Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) announced today that it has entered into a five-year $750 million bank credit facility comprised of a $250 million term loan and a $500 million revolving line of credit. The new credit facility replaces term loans totaling $575 million, and a $165 million revolving line of credit. Wells Fargo Securities, LLC; Merrill Lynch, Pierce Fenner & Smith Incorporated; and SunTrust Robinson Humphrey, Inc. are the Joint Lead Arrangers and Joint Bookrunners; and Wells Fargo Bank, National Association is the Administrative Agent and Collateral Agent. Bank of America, N.A., and SunTrust Bank are Co-Syndication Agents; and Regions Bank; Fifth Third Bank; and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch are Co-Documentation Agents. U.S. Bank National Association; PNC Bank, National Association; Union Bank, N.A.; Branch Banking and Trust Company; Synovus Bank; First Tennessee Bank, NA; Raymond James Bank, FSB; 1st Farm Credit Services, PCA; FCS Financial, PCA; Greenstone Farm Credit Services, ACA/FLCA; AgChoice Farm Credit, ACA; and Avenue Bank also participated in the facility.
“This is one of the two largest all-bank financing transactions ever completed by a full-service restaurant company,” said Lawrence E. Hyatt, the Senior Vice President and Chief Financial Officer of Cracker Barrel Old Country Store, Inc. “We believe that the successful completion of this transaction demonstrates the confidence of the financial community in our Company, the Cracker Barrel brand, and our strategic direction. By simplifying and extending the maturities of our financing arrangements, this new credit facility provides us with greater financial flexibility.”
At the time of closing, there were $325 million of borrowings under the new revolving line of credit, in addition to letters of credit issued in the normal course of the Company’s business. The Company estimates that the closing of its new bank facility will result in additional interest charges of approximately $5 million in the fourth quarter of its 2011 fiscal year, as a result of fees related to the new facility, and the unamortized portion of deferred financing costs related to the facilities that it replaces. These charges were not included in the Company’s previously-issued guidance for the fourth quarter.
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) was established in 1969 in Lebanon, Tenn. and operates 603 company-owned locations in 42 states. Every Cracker Barrel unit is open seven days a week with hours Sunday through Thursday, 6 a.m. – 10 p.m., and Friday and Saturday, 6 a.m. – 11 p.m. For more information, visit: crackerbarrel.com.