Longs Drugs obtains amended $325 million revolver at Libor plus 100 to 150 bps

New York, Feb. 1 - Longs Drug Stores Corp. completed an amendment giving it a $325 million secured revolving credit facility with interest at Libor plus 100 to 150 basis points.

Bank of America Retail Finance Group led the banks.

There is a $75 million accordion feature.

Interest is at Libor plus 100 bps if credit extensions are 60% or less of the smaller of the total commitment and the borrowing base, Libor plus 125 bps at up to 80% and Libor plus 150 bps above that level, according to an 8-K filing with the Securities and Exchange Commission.

The facility expires on Jan. 30, 2012. The amendment was completed on Tuesday.

The Walnut Creek, Calif., drug store chain will use the revolver for working capital needs and capital expenditures as well as to fund other general corporate purposes.

"This amended credit facility strengthens our liquidity, increases our financial flexibility and gives us a more attractive source of funding to pursue our financial and strategic objectives," said Steven F. McCann, executive vice president and chief financial officer, in a news release.

"The lower interest rate on the amended facility is primarily due to general market conditions and our improved financial performance."

The facility has no financial covenants and no credit restrictions on capital expenditures or share repurchases if availability of credit remains above a minimum level.

Longs paid a 5 bps amendment fee for the facility, which replaces a $280 million loan dating back to August 2004, subsequently increased through the accordion to $325 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.