Summary
This Form 8-K filing from Darden Restaurants, Inc. (DRI) reports the termination of its $1.15 billion 364-day credit facility, effective October 18, 2007. This interim facility was initially established on September 20, 2007, to partially finance the acquisition of RARE Hospitality International, Inc. The company has since repaid the full amount borrowed under this interim facility on October 16, 2007. The repayment was funded through the net proceeds of a $1.15 billion senior notes issuance on October 16, 2007, and additional borrowings from its existing $750 million revolving credit facility. Notably, Darden Restaurants incurred no early termination penalties for closing this interim credit agreement. The filing also confirms ongoing business relationships with Bank of America and its affiliates for various financial services.
Key Highlights
- 1Termination of a $1.15 billion 364-day credit agreement, originally dated September 20, 2007.
- 2The terminated credit facility was used to finance a portion of the RARE Hospitality International, Inc. acquisition.
- 3The full $1.15 billion borrowed under the interim facility was repaid on October 16, 2007.
- 4Repayment was funded by proceeds from a $1.15 billion senior notes issuance and existing revolving credit facility.
- 5No early termination penalties were incurred by Darden Restaurants for the termination of the interim credit facility.
- 6The filing clarifies the company's financing strategy following the RARE Hospitality acquisition, shifting from short-term debt to longer-term senior notes.
- 7Confirms continued financial relationships and services provided by Bank of America and its affiliates.