Fred’s amends credit agreement, increases revolver to $270 million

By Tali Rackner

Minneapolis, Aug. 3 – Fred’s, Inc. entered into a fourth amendment to its credit agreement on July 31 to increase the revolving loan commitment to $270 million from $225 million, according to an 8-K filing with the Securities and Exchange Commission.

As a result, certain thresholds that relate to the revolving loan commitment were also increased.

In addition, the amendment adds Bank of America as a co-collateral agent, increases the amount of pharmacy scripts that may be included in the borrowing base and revises the excess availability requirements for certain acquisitions.

Regions Bank is the administrative agent on the credit agreement.

Fred’s is a Memphis, Tenn.-based operator of discount general merchandise stores and specialty pharmacy-only locations.

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