Sprouts Farmers Market, Inc. (NASDAQ: SFM) has recently closed a $600 million revolving credit facility, replacing its previous $700 million facility. The new facility, which has a commitment expiration date of July 2030, offers revised pricing terms for loans and commitments, as well as additional covenant flexibility. At the time of closing, Sprouts had no outstanding borrowings and $23 million in letters of credit outstanding under the new facility, leaving a remaining availability of $577 million.
JPMorgan Chase Bank, N.A. served as the administrative agent, issuing bank, and swingline lender for the facility, with Truist Securities, Inc. and PNC Capital Markets LLC as joint lead arrangers and joint bookrunners. Truist Bank and PNC Bank, National Association, acted as co-syndication agents, while Bank of America, N.A., BMO Bank, N.A., and U.S. Bank, National Association, acted as co-documentation agents.
Curtis Valentine, the Chief Financial Officer of Sprouts, highlighted the facility's importance in providing the company with greater financial flexibility as it continues to grow. This move comes as the company plans to fund operations and unit growth through its strong cash flow generation.
Following these announcements, the company's shares moved -2.03%, and are now trading at a price of $161.07. If you want to know more, read the company's complete 8-K report here.
