Ruddick gets $350 million revolver at Libor plus 112.5-187.5 bps

By Susanna Moon

Chicago, Feb. 1 - Ruddick Corp. closed a $350 million five-year senior revolving credit facility with a $35 million sublimit for swingline loans and a $100 million sublimit for the issuance of letters of credit, according to an 8-K filing with the Securities and Exchange Commission.

The revolver was made available under a credit agreement that was amended and restated on Monday.

Interest on the loans is Libor plus 112.5 basis points to 187.5 bps, based on leverage. The commitment fee is 12.5 bps to 27.5 bps.

The agreement has a $100 million accordion feature and two one-year maturity extension options.

Wells Fargo Bank, NA is the administrative agent, and Wells Fargo Securities, LLC is co-lead arranger and bookrunner. BB&T Capital Markets is co-lead arranger. Branch Banking & Trust Co. is the syndication agent. JPMorgan Chase Bank, NA, Farm Credit Bank of Texas and Fifth Third Bank are the co-documentation agents.

The agreement requires the company to maintain a consolidated fixed charge ratio of at least 1.5 times and a consolidated leverage ratio of no more than 4 times.

Ruddick is a Charlotte, N.C.-based holding company that has two businesses through its wholly owned subsidiaries: Harris Teeter, Inc., a grocery chain, and American & Efird, Inc., a maker of sewing threads.

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