Sprouts Farmers Market, Inc. has announced the closing of a $600 million revolving credit facility, which replaces the company's previous $700 million revolving credit facility. The new facility contains terms and conditions substantially similar to the previous one, with a commitment expiration date of July 2030, revised pricing terms for loans and commitments, and additional covenant flexibility.
At the time of closing, Sprouts had no outstanding borrowings and letters of credit of $23 million outstanding under the new revolving credit facility, with a remaining availability of $577 million. JPMorgan Chase Bank, N.A., acted as administrative agent, issuing bank, and swingline lender, while Truist Securities, Inc. and PNC Capital Markets LLC acted as joint lead arrangers and joint bookrunners.
Curtis Valentine, the Chief Financial Officer of Sprouts, stated that the new facility provides the company with greater financial flexibility as it continues to grow. This move reflects the company's confidence in its ability to fund operations and unit growth through robust cash flow generation.
This change in the credit facility could potentially have significant implications for the company's financial position and future strategic initiatives. The market has reacted to these announcements by moving the company's shares -2.03% to a price of $161.07. For more information, read the company's full 8-K submission here.
