Summary
Darden Restaurants, Inc. (DRI) filed an 8-K report on August 18, 2005, announcing the entry into a new Credit Agreement dated August 16, 2005. This agreement establishes a new unsecured revolving credit facility of up to $500 million, maturing on August 15, 2010. This facility replaces a previous credit agreement and is intended to support the company's commercial paper program and provide for general corporate purposes. The new credit facility offers flexibility in borrowing terms, with interest rates tied to LIBOR or a base rate, and allows for letters of credit up to $100 million. Key financial covenants include maintaining a consolidated total debt to consolidated total capitalization ratio below 0.65 to 1.00. As of the filing date, no borrowings were outstanding under this new facility. The company also noted the termination of its prior credit agreement and highlighted various existing relationships with the banks involved in the new agreement, including those providing investment banking and other financial services.
Key Highlights
- 1Darden Restaurants entered into a new $500 million unsecured revolving credit facility, replacing a prior agreement.
- 2The new facility matures on August 15, 2010, providing a five-year term.
- 3Proceeds can be used for Darden's commercial paper program and general corporate purposes.
- 4The agreement allows for up to $100 million in letters of credit.
- 5Interest rates are variable, based on LIBOR or a base rate, with facility fees determined by the company's debt rating.
- 6Key financial covenants include a debt-to-capitalization ratio below 0.65 to 1.00.
- 7No borrowings were outstanding under the new facility as of August 18, 2005.