Cracker Barrel Old Country Store, Inc. (Nasdaq:CBRL) announced today
that it has entered into a five-year $750 million revolving line of
credit. This new credit facility replaces a $500 million revolving line
of credit, and a term loan of $181 million. Wells Fargo Securities, LLC;
Merrill Lynch, Pierce Fenner & Smith Incorporated; and Rabobank are the
Joint Lead Arrangers and Joint Bookrunners; and Wells Fargo Bank,
National Association is the Administrative Agent. Bank of America, N.A.,
and Rabobank are Co-Syndication Agents; and SunTrust Bank, Regions Bank,
US Bank National Association, and the Bank of Tokyo-Mitsubishi UFJ, Ltd.
are Co-Documentation Agents. Branch Banking and Trust Company, Fifth
Third Bank, PNC Bank, National Association, First Tennessee Bank,
National Association, Synovus Bank, Pinnacle Bank, Greenstone Farm
Credit Services, ACA/FLCA, and Avenue Bank also participated in the
facility.
“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,” said Lawrence E.
Hyatt, the Senior Vice President and Chief Financial Officer of Cracker
Barrel Old Country Store, Inc. “By simplifying and extending the
maturities of our financing arrangements, and reducing our credit
spreads, this new facility provides us with greater financial
flexibility.”
At the time of closing, there were $400 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. Compared to the facility
that it replaces, the new facility reduces the Company’s credit spreads
by 0.25%, which the Company estimates will result in a reduction of
annual interest expense of approximately $1 million per year.
About Cracker Barrel
Cracker Barrel Old Country Store, Inc. provides a friendly
home-away-from home in its old country stores and restaurants. Guests
are cared for like family while relaxing and enjoying real home-style
food and shopping that’s surprisingly unique, genuinely fun and
reminiscent of America’s country heritage…all at a fair price. Cracker
Barrel Old Country Store, Inc. (NASDAQ:CBRL) was established in 1969 in
Lebanon, Tennessee and operates 634 company-owned locations in 42
states. For more information, visit crackerbarrel.com
Except for specific historical information, certain of the matters
discussed in this press release may express or imply projections of
revenues or expenditures, statements of plans and objectives or future
operations or statements of future economic performance. These, and
similar statements are forward-looking statements concerning matters
that involve risks, uncertainties and other factors which may cause the
actual performance of Cracker Barrel Old Country Store, Inc. and its
subsidiaries to differ materially from those expressed or implied by
this discussion. All forward-looking information is provided pursuant to
the safe harbor established under the Private Securities Litigation
Reform Act of 1995 and should be evaluated in the context of these
factors. Forward-looking statements generally can be identified by the
use of forward-looking terminology such as "may," "will," "would,"
"could," "expect," "intend," "estimate," "anticipate," "believe,"
"should," or "continue" (or the negative or other derivatives of each of
these terms) or similar terminology and include the expected effects of
operational improvement initiatives, such as new menu items and retail
offerings. Factors which could materially affect actual results include,
but are not limited to: the effects of uncertain consumer confidence,
higher costs for energy, general or regional economic weakness, weather
on sales and customer travel, and discretionary income or personal
expenditure activity of our customers; changes in or implementation of
additional governmental or regulatory rules, regulations and
interpretations affecting tax, wage and hour matters, health and safety,
pensions, insurance or other undeterminable areas; the effects of our
substantial indebtedness and associated restrictions on our financial
and operating flexibility and ability to execute or pursue our operating
plans and objectives; changes in interest rates or capital market
conditions affecting our financing costs and ability to refinance all or
portions of our indebtedness; the effects of business trends on the
outlook for individual restaurant locations and the effect on the
carrying value of those locations; the actual results of pending, future
or threatened litigation or governmental investigations and the costs
and effects of negative publicity associated with these activities;
practical or psychological effects of natural disasters or terrorist
acts or war and military or government responses; disruptions to our
restaurant or retail supply chain; changes in foreign exchange rates
affecting our future retail inventory purchases; implementation of new
or changes in interpretation of existing accounting principles generally
accepted in the United States of America; and other factors described
from time to time in our filings with the Securities and Exchange
Commission, press releases, and other communications.
Any forward-looking statement made by us herein, or elsewhere, speaks
only as of the date on which made. We expressly disclaim any intent,
obligation or undertaking to update or revise any forward-looking
statements made herein to reflect any change in our expectations with
regard thereto or any change in events, conditions or circumstances on
which any such statements are based.
Copyright Business Wire 2015