Fresh Market enters $175 million replacement revolver due 2019

By Marisa Wong

Madison, Wis., June 18 – Fresh Market, Inc. entered into a $175 million unsecured revolving credit agreement on June 12 with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement refinanced and replaced the company’s senior unsecured revolving credit facility dated Feb. 22, 2011. The 2011 facility was terminated on June 12.

The new facility matures June 12, 2019 and is available for working capital, capital expenditures and other general corporate purposes, including permitted acquisitions and issuance of letters of credit.

The company is entitled to request an increase in the size of the facility by a total amount not exceeding $100 million.

The credit agreement includes a $60 million letter-of-credit sublimit and a $15 million swingline sublimit.

Interest is equal to Libor plus an applicable margin that ranges from 90 basis points to 200 bps, depending on the company’s ratio of (a) adjusted funded debt minus cash and cash equivalents in excess of $5 million as of the end of each fiscal quarter to (b) consolidated EBITDAR for the trailing four quarters.

There is also a commitment fee of 12.5 bps to 25 bps.

The credit agreement requires the company to maintain a consolidated maximum leverage ratio as of the end of any fiscal quarter of not more than 4.25 to 1.00 and a consolidated fixed-charge coverage ratio as of the end of each fiscal quarter of not less than 1.70 to 1.00.

The supermarket chain is based in Greensboro, N.C.

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