US Foods lowers interest rates on asset-based facility, extends term

By Wendy Van Sickle

Columbus, Ohio, June 24 – US Foods, Inc. amended its $1.1 billion asset-based lending agreement on Friday to include lower interest rates and a one-year extension of its term, according to an 8-K filed with the Securities and Exchange Commission.

This amendment, the agreement’s fourth, extends its maturity date to May 11, 2017 from May 11, 2016.

In addition, borrowing costs are reduced by 50 basis points.

Depending on the leverage ratio, tranche A loans now carry an interest rate of Libor plus 150 bps to Libor plus 200 bps while tranche A-1 loans have a rate of Libor plus 275 bps to Libor plus 325 bps.

The commitment fee, which also depends on leverage, now ranges from 25 bps to 37.5 bps.

The company paid an upfront fee under the amendment of 5 bps.

Citicorp North America, Inc. is the administrative agent in the agreement, which was originally dated June 3, 2007.

US Foods is a Chicago-based broadline foodservice distributor.

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