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The amendment primarily reflects increases in operational flexibility and extends the term of the credit facility to June 2017. The initial amount of the facility is $200 million, with an accordion feature that would raise the facility to $235 million at the Spartan’s request. Under the accordion feature, the facility could be further expanded to $300 million in total availability, subject to lender approval. The refinancing is expected to save the company $0.4 million annually as a result of lower unused fees on the commitments, and lower issuance cost amortization.
“We are pleased with our ability to amend the revolving credit facility to achieve terms that improve our financial flexibility, extend the maturity date and lower our interest expense,” noted Dave Staples, EVP and CFO at Grand Rapids-based Spartan. “We appreciate the support that we received in this transaction from our banking partners, which reflects the strength of our relationships with our banks and the solid fundamentals of our business.”
Spartan, the United States’ 10th-largest grocery distributor, with 1.4 million square feet of warehouse, distribution, and office space, distributes more than 40,000 private- and national-brand products to approximately 375 independent grocery locations in Michigan, Indiana and Ohio, as well as to 97 corporate-owned stores in Michigan under the banners of Family Fare Supermarkets, Glen’s Markets, D&W Fresh Markets, VG’s Food and Pharmacy and Valu Land.