Cracker Barrel enters into $750 million revolving line of credit

By Jennifer Chiou

New York, Jan. 9 – Cracker Barrel Old Country Store, Inc. entered into on Thursday a $750 million revolving line of credit with Wells Fargo Bank, NA as administrative agent, according to a news release.

The new five-year credit facility replaces a $500 million revolving line of credit and a $250 million term loan facility, the company stated in an 8-K filing with the Securities and Exchange Commission.

The new loan includes a $25 million swingline subfacility as well as an accordion feature that allows the company to increase the facility by a total of up to $300 million.

There is a $50 million letter-of-credit subfacility.

Wells Fargo Securities, LLC, Bank of America Merrill Lynch and Rabobank acted as joint lead arrangers and joint bookrunners with Bank of America, NA and Rabobank as co-syndication agents.

SunTrust Bank, Regions Bank, US Bank NA and Bank of Tokyo-Mitsubishi UFJ, Ltd. are co-documentation agents, and Branch Banking and Trust Co., Fifth Third Bank, PNC Bank, NA, First Tennessee Bank, NA, Synovus Bank, Pinnacle Bank, Greenstone Farm Credit Services, ACA/FLCA and Avenue Bank also participated in the facility, the release noted.

Compared to the facility that it replaces, the new facility reduces the company’s credit spreads by 25 bps.

Specifically, the new facility bears interest at Libor plus 100 bps to 200 bps, depending on the company’s consolidated total leverage ratio.

Principal is payable in full at maturity on Jan. 8, 2020, and there are no scheduled principal payments prior to maturity, the SEC filing added.

“By simplifying and extending the maturities of our financing arrangements and reducing our credit spreads, this new facility provides us with greater financial flexibility,” Lawrence E. Hyatt, senior vice president and chief financial officer, said in the release.

At the time of closing, $400 million was drawn under the new revolving line of credit.

Cracker Barrel is a Lebanon, Tenn.-based operator of restaurants.

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