Whole Foods gets $950 million credit facility

By Sara Rosenberg

New York, Aug. 28 - Whole Foods Market, Inc. closed on a five-year $950 million senior credit facility on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.

The facility consists of a $700 million term loan and a $250 million revolver, with pricing on the two tranches based on corporate ratings.

The revolver has a commitment fee that can range from nine to 35 basis points, also depending on corporate ratings.

On the term loan, Royal Bank of Canada is the administrative agent and JPMorgan is the syndication agent, and on the revolver, JPMorgan is the administrative agent and Royal Bank of Canada is the syndication agent.

Security for the facility is a pledge of substantially all of the stock of the company's subsidiaries.

Proceeds are being used to fund the acquisition of Wild Oats Markets, Inc. for $18.50 per share and to refinance Whole Foods existing $200 million revolver.

Covenants under the facility include a fixed-charge coverage ratio and maximum leverage ratio.

Austin, Texas-based Whole Foods Market and Boulder, Colo.-based Wild Oats Markets are both retailers of natural and organic foods.

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