Summary
Darden Restaurants, Inc. (DRI) announced on October 3, 2011, the entry into a new $750 million revolving Credit Agreement. This agreement, which matures on October 3, 2016, replaces a previous credit facility and will be used for various corporate purposes including working capital, capital expenditures, potential acquisitions, and refinancing of existing debt. The new credit line is senior unsecured and includes standard covenants and events of default typical for such facilities. The termination of the prior credit agreement, which had no outstanding borrowings as of the reporting date, signifies a transition to a new financing structure. The new credit facility's terms, including interest rates and fees, will be influenced by Darden's credit ratings, providing flexibility and potentially lower costs as the company's creditworthiness improves. This move demonstrates Darden's proactive approach to managing its liquidity and capital structure to support its ongoing operations and strategic initiatives.
Key Highlights
- 1Darden Restaurants entered into a new $750 million revolving Credit Agreement on October 3, 2011.
- 2The Credit Agreement matures on October 3, 2016.
- 3Proceeds from the credit facility can be used for commercial paper back-up, working capital, capital expenditures, refinancing debt, acquisitions, and general corporate purposes.
- 4The new credit facility is senior unsecured and includes customary covenants and events of default.
- 5The Credit Agreement replaces a prior $750 million credit agreement, which was terminated simultaneously.
- 6There were no outstanding borrowings under the prior credit agreement as of October 3, 2011.
- 7The credit facility includes a sublimit of $150 million for the issuance of letters of credit.