Spartan Stores, Inc. (NASDAQ:SPTN), a leading regional grocery distributor and retailer, today announced it has amended and restated the terms of its existing Senior Secured Revolving Credit Facility.
The amendment primarily reflects increases in operational flexibility and extends the term of the Credit Facility to June of 2017. The initial amount of the facility is $200 million, with an accordion feature that would increase the facility to $235 million at the Company’s request. Under this accordion feature, the facility could be expanded further to $300 million in total availability, subject to lender approval. The refinancing is expected to save the company $0.4 million per year 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,” said Dave Staples, Spartan’s Executive Vice President and Chief Financial Officer. “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.”
About Spartan Stores
Grand Rapids, Michigan-based Spartan Stores, Inc. (Nasdaq:SPTN) is the nation's tenth largest grocery distributor with 1.4 million square feet of warehouse, distribution, and office space located in Grand Rapids, Michigan. The Company distributes more than 40,000 private and national brand products to approximately 375 independent grocery locations in Michigan, Indiana and Ohio, and to our 97 corporate owned stores located in Michigan, including Family Fare Supermarkets, Glen's Markets, D&W Fresh Markets, VG's Food and Pharmacy, and Valu Land.
This press release contains forward-looking statements. Forward-looking statements are identifiable by words or phrases such as “expected”, “could”, “would” and similar words and phrases. Forward-looking statements are subject to a number of factors that could cause actual results to differ materially. Our ability to increase the total availability under our credit facility, successfully realize growth opportunities, reduce debt, and continue to pay dividends is not certain and depends on many factors, not all of which are in our control. Additional information about the risk factors to which Spartan Stores is exposed and other factors that may adversely affect these forward-looking statements is contained in Spartan Stores’ reports and filings with the Securities and Exchange Commission. Investors should not place undue reliance on forward-looking statements as predictions of future results. Spartan Stores undertakes no obligation to update or revise any forward-looking statements to reflect developments or information obtained after the date of this press release.