Village Super Market converts $50 million of revolver to term loan

By Taylor Fox

New York, Sept. 8 – Village Super Market, Inc. converted $50 million of its revolving line of credit to a secured converted term loan, as permitted by the credit agreement entered into on May 6 with Wells Fargo National Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The conversion reduced the maximum amount available for borrowing under the revolving line of credit to $75 million from $125 million.

The term loan bears interest at Libor plus 150 basis points and is repayable in monthly installments based on a 15-year amortization schedule beginning on the conversion date.

Village previously executed a forward interest rate swap, effective on the conversion date, for a notional amount equal to the term loan amount that fixes the base Libor rate at 69 bps per annum for 15 years, resulting in a fixed effective interest rate of 2.19% on the converted term loan.

The supermarket operator is based in Springfield, N.J.

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