LEBANON Tenn. Cracker Barrel Old Country Stores Inc. said last week it has amended its credit facilities to extend the availability and maturity dates of its revolving credit facility and its term loan.
The amendment extends by nearly two years – from April 2011 to January 2013 – the availability of $165 million of the company’s $250 million currently available under its revolving credit facility. In addition, the maturity of $250 million of Cracker Barrel’s existing $643 million term loans was extended by three years to April 2016.
“We are pleased to successfully complete this amendment, strengthening our capital structure by extending the maturities of our revolver and a portion of our term loans,” said Sandra B. Cochran, Cracker Barrel’s executive vice president and chief financial officer. “We will also be able to appropriately size our revolver to a level consistent with our improved inventory management and cash flow needs.”
Cracker Barrel, which operates 593 family-dining restaurants, said net interest expense for fiscal 2010 should total between $48 and $50 million, up from its previous expectations for interest expenses of between $46 and $48 million. The company said it would update the remainder of its outlook on Nov. 24, when it announces its fiscal 2010 first-quarter earnings.
The current interest rates on the term loans total Libor, or London Interbank Offered Rate, plus 150 basis points, or 1.5 percent, on the non-extended portion and Libor plus 250 basis points on the extended portion, Cracker Barrel said.
Contact Sarah E. Lockyer at [email protected].