Bob Evans Farms announced that it entered into a $750 million amended revolving credit facility agreement effective January 2, 2014. The credit agreement represents a syndicated secured revolving credit facility under which up to $750 million will be available, with a letter of credit sub-facility of $50 million, and a $300 million accordion option to increase the revolving credit commitment to $1.05 billion.
PNC Bank acted as administrative agent, and PNC Capital joint lead arranger and sole bookrunner. J.P. Morgan Securities, Merrill Lynch; Pierce, Fenner & Smith and Wells Fargo Bank acted as joint lead arrangers. Co-syndicated agents included Bank of America, JPMorgan Chase Bank and Wells Fargo Bank. The other lenders are KeyBank, Bank of America, Fifth Third Bank, U.S. Bank, The Huntington National Bank and The Ohio Valley Bank Company.
Chairman and CEO Steve Davis said, “We are pleased with the closing of the amended credit facility. This credit facility will provide flexible and low-cost funding to help us to continue driving our businesses with growth investments, while also rewarding our shareholders with meaningful capital returns through earnings growth, dividends and share repurchases. As per our commitment, this credit facility will enable us to complete our intended full $225 million share repurchase program prior to the end of fiscal year 2014. In conjunction with our board of directors and external advisors, we evaluated a number of alternative funding options. A revolving credit facility remained the lowest cost, and least restrictive, funding option.”
Bob Evans Farmsowns and operates full-service restaurants under the Bob Evans Restaurants brand name.