Darden closes $750 million revolver, terminates prior credit facility

By Aleesia Forni

Columbus, Ohio, Oct. 3 - Darden Restaurants Inc. entered into a new $750 million revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The facility bears interest at a rate based on the company's debt rating and ranges from Libor plus 87.5 basis points to 150 bps.

Facility fees range from 12.5 bps to 25 bps, also dependent upon the company's debt rating.

In connection with this new facility, the company terminated its existing $750 million credit agreement dated Sept. 20, 2007 and repaid all amounts outstanding under this prior agreement.

The facility matures on Oct. 3, 2016, and proceeds may be used for commercial paper back-up, working capital, refinancing, acquisitions and other general corporate purposes.

This credit agreement contains a $150 million sublimit for the issuance of letters of credit.

Under this senior unsecured credit facility, the company must maintain a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are joint book managers and are joined by SunTrust Robinson Humphrey Inc. and U.S. Bank NA as joint lead arrangers.

Bank of America NA is administrative agent, while Wells Fargo Bank NA is syndication agent.

SunTrust Bank and U.S. Bank NA serve as documentation agents.

Darden is an Orlando, Fla.-based casual dining operator.

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