Cal-Maine Foods gets $100 million five-year revolver with BMO Harris

By Sarah Lizee

Olympia, Wash., July 10 – Cal-Maine Foods, Inc. entered into a credit agreement on Tuesday with BMO Harris Bank NA as administrative agent that provides for an up to $100 million senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility matures July 10, 2023.

Borrowings bear interest at Libor plus a margin that ranges from 100 basis points to 175 bps, depending on the average outstanding balance.

The commitment fee is 20 bps.

The revolver includes a $7.5 million sublimit for the issuance of standby letters of credit and a $7.5 million sublimit for swingline loans.

There is an up to $25 million accordion feature.

Proceeds may be used for general working capital purposes, capital expenditures, to refinance existing debt and to finance acquisitions.

The two financial covenants include a minimum working capital ratio of 2 to 1 and an annual limit on capital expenditures of $100 million.

BMO Capital Markets is the lead arranger and bookrunner. BMO Harris Bank is swingline lender and letter-of-credit issuer and a lender with Greenstone Farm Credit Services, ACA.

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

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