Central Garden & Pet gets restated $400 million five-year revolver

By Angela McDaniels

Tacoma, Wash., April 26 – Central Garden & Pet Co. and some of its domestic subsidiaries entered into an amended and restated credit agreement on Friday that provides for a $400 million senior secured asset-based revolving credit facility due April 22, 2021, according to an 8-K filing with the Securities and Exchange Commission.

The initial interest rate is Libor plus 125 basis points. The margin ranges from 125 bps to 150 bps based on the company’s consolidated senior leverage ratio.

The revolver has a $200 million accordion feature, a $50 million sublimit for the issuance of standby letters of credit and a $20 million sublimit for short-notice borrowings.

The revolver is subject to a borrowing base, reduced capacity due to reserves and certain other restrictions.

At closing, the borrowing base was about $368 million, and the company had about $86 million of existing commitments.

Proceeds will be used for general corporate purposes.

SunTrust Bank is the administrative agent. SunTrust Robinson Humphrey, Inc. is the left lead arranger and joint bookrunner. Bank of America, NA, U.S. Bank NA and Wells Fargo Bank, NA are the joint lead arrangers and joint bookrunners and co-syndication agents. Bank of the West, BMO Harris Bank NA, JPMorgan Chase Bank, NA and KeyBank NA are the co-documentation agents.

The revolver has financial covenants that require the company to maintain a minimum fixed charge coverage ratio of 1 to 1 upon triggered quarterly testing, reporting requirements and events of default.

The revolver is secured by substantially all assets of the borrowing parties, including pledges of 100% of the stock or other equity interest of each domestic subsidiary that is directly owned by that entity and 65% of the stock or other equity interest of each foreign subsidiary that is directly owned by that entity.

Before the amendment and restatement, the facility size was $390 million, the maturity was Dec. 5, 2018 and the margin over Libor ranged from 125 bps to 175 bps.

Based in Walnut Creek, Calif., Central Garden & Pet markets lawn & garden products and pet supplies.

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