Winn-Dixie gets $600 million amended and restated credit facility

By Sara Rosenberg

New York, June 30 - Winn-Dixie Stores Inc. amended and restated its senior secured revolving credit facility, increasing the size to $600 million from $300 million. Wachovia Capital Markets LLC is the sole lead arranger on the deal.

Wachovia Bank is administrative agent, GMAC Commercial Finance LLC is syndication agent, Wells Fargo Foothill LLC, General Electric Capital Corp. and CIT Group/Business Credit Inc. are co-documentation agents, and Congress Financial Corp. is collateral agent.

The new $600 million facility consists of a $400 million three-year revolver and a $200 million three-year standby letter-of-credit facility, according to a company news release.

The facility carries an initial interest rate of Libor plus 225 basis points. After Dec. 31, the interest rate can range from Libor plus 175 to 275 basis points, depending on required average excess availability (see table), according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The facilities are asset based with a borrowing base comprised of an agreed percentage of the inventory balance, pharmacy receivables, pharmacy scripts and some real estate.

Covenants under the credit agreement include minimum EBITDA and maximum capital expenditures. These requirements will not be tested as long as the company maintains a minimum excess availability.

"This additional borrowing capacity will support the ongoing execution of our strategic initiatives designed to improve Winn-Dixie's competitive positioning," said Frank Lazaran, president and chief executive officer, in the release.

Winn-Dixie is a Jacksonville, Fla., food retailer.

Libor Spread Determination

Required Average Excess Availability Applicable Margin for Libor Loans

Greater than $350 million 1.75%

Greater than $300 million but equal to or less $350 million 2.00%

Greater than $250 million but equal to or less than $300 million 2.25%

Greater than $200 million but equal to or less than $250 million 2.50%

Equal to or less than $200 million 2.75%

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