Universal Corporation executed a new bank credit facility agreement, which consolidates and extends maturities of its short-term revolving credit and long-term borrowing facilities. J.P. Morgan Securities, SunTrust Robinson Humphrey and AgFirst Farm Credit Bank led the transaction.

The new agreement includes a $430 million five-year revolving credit facility, a $150 million five-year term loan, and a $220 million seven-year term loan. The revolving credit facility contains terms and conditions that are substantially similar to the company’s previous revolving credit facility. The term loans, which were fully funded at closing, require no amortization and are pre-payable without penalty prior to maturity. The facilities include a customary accordion feature allowing for additional borrowings of up to $100 million under certain conditions. Currently, borrowings under the agreement bear interest at variable rates based on LIBOR plus a margin of 1.50% to 1.75%.

David C. Moore, senior vice president and chief financial officer, stated, “I am pleased to announce this major refinancing which provides us with continued flexible and efficient funding mechanisms for our business. We have worked diligently to maintain a strong balance sheet, and the new facilities deliver well-priced financial resources for the next five to seven years. I also want to express our appreciation for the support and confidence shown by our bank group.”

Richmond, VA-based Universal is a global leaf tobacco supplier and conducts business in more than 30 countries.