8-KMaterial AgreementsExhibits & Filings

DARDEN RESTAURANTS INC 8-K Report, Material Agreement (Oct 30, 2013)

Filed October 30, 2013For Securities:DRI

Summary

Darden Restaurants, Inc. (DRI) announced on October 30, 2013, a material definitive agreement via a First Amendment to its existing $750 million revolving Credit Agreement. This amendment, dated October 24, 2013, significantly extends the maturity date of the credit facility. The original maturity was October 3, 2016, and it has now been pushed to October 24, 2018. Furthermore, the amendment grants Darden the flexibility to request up to two additional one-year extensions on the maturity date, providing enhanced long-term financial planning capabilities. While the interest rates and fees are subject to a ratings-based pricing grid, which was also amended, the core terms of the agreement remain in place. Importantly, as of the filing date, Darden had no outstanding balances under this credit facility, indicating a strong liquidity position at that time.

Key Highlights

  • 1Darden Restaurants entered into a First Amendment to its $750 million revolving Credit Agreement.
  • 2The maturity date of the credit facility has been extended from October 3, 2016, to October 24, 2018.
  • 3The Company has the option to request up to two additional one-year extensions to the maturity date.
  • 4Interest rates and fees are subject to a revised ratings-based pricing grid.
  • 5As of October 30, 2013, there were no outstanding borrowings under the revolving credit agreement.
  • 6The amendment provides Darden with increased financial flexibility and extended access to its credit line.

Frequently Asked Questions

The primary impact is the extension of the maturity date of Darden's $750 million revolving credit facility by two years, from October 3, 2016, to October 24, 2018. This provides the company with a longer runway for accessing these funds if needed.

No, the amendment itself does not change Darden's existing debt levels. As of the filing date, Darden had no outstanding balances under the credit agreement, indicating it was not actively drawing on this facility.

The First Amendment gives Darden the option to request up to two additional one-year extensions to the maturity date beyond October 24, 2018. This provides significant flexibility for future financial planning and cash management.

The First Amendment did amend the ratings-based pricing grid, which means the interest rates and fees associated with borrowings under the credit agreement are now determined by this revised grid. The specific rates would fluctuate based on Darden's credit rating at any given time.