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Unified Grocers, Inc. said yesterday that it has exercised a provision in its current revolving credit agreement that raises the total committed funds available to the company from $225 million to $250 million.
The provision enables Unified to expand the capacity of its existing credit agreement to as much as $300 million without altering the favorable terms and conditions of its existing revolving credit agreement that expires in 2012.
Providing Unified with additional borrowing capacity were Union Bank of California, which boosted its existing commitment by $10 million, and Bank of the West, which entered the credit facility with $15 million.
"Given today's extremely tight credit markets, we are fortunate to have access to new capital, and appreciate the support of these two institutions that provided it," said United president and c.e.o. Al Plamann. "While we have no immediate plans to use this newly acquired capital, we believe it is a prudent business decision to have additional funds readily available should certain opportunities arise."
Los Angeles-based Unified Grocers, Inc. is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States. Unified and its subsidiaries offer independent retailers all the resources they need to compete in the supermarket industry.