Cal-Maine Foods amends and restates credit agreement, extends to 2026

By Rebecca Melvin

Concord, N.H., Nov. 19 – Cal-Maine Foods, Inc. entered into an amended credit agreement, providing for an increased senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The Nov. 15 agreement amends and restates the company’s existing credit agreement dated July 10, 2018.

Specifically, the agreement provides for up to $250 million of revolver borrowings, including a $15 million sublimit for the issuance of standby letters of credit and a $15 million sublimit for swingline loans.

The facility also has an accordion feature permitting the borrower to increase the facility by up to $200 million of term loans or revolving commitments.

The facility matures Nov. 15, 2026.

The proceeds can be used for general working capital and corporate purposes, capital expenditures, to refinance existing debt, to finance permitted acquisitions and to fund the credit agreement’s associated fees and expenses.

As of Thursday, no amounts were borrowed and $4.1 million in standby letters of credit were issued under the credit facility.

Borrowings bear interest at Libor plus a margin that ranges from 100 basis points to 175 bps, depending on the total funded debt to capitalization ratio.

The commitment fee is 15 bps to 25 bps, depending on the total funded debt to capitalization ratio.

BMO Harris Bank NA is administrative agent, swingline lender and letter of credit issuer. It is an initial lender together with Greenstone FarmCredit Services, ACA, AgFirst Farm Credit Bank, Compeer Financial, ACA and Farm Credit Bank of Texas. BMO Capital Markets is the sole lead arranger and sole bookrunner and GreenStone Farm Credit Services, ACA, is syndication agent.

The credit agreement is secured by a first-priority perfected security interest in substantially all of the borrower’s and the guarantors’ accounts, payment intangibles, instruments (including promissory notes), chattel paper, inventory (including farm products) and deposit accounts maintained with BMO Harris Bank.

The company is a fresh egg producer based in Jackson, Miss.

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