Unified Grocers announced it has successfully completed a refinancing of its senior credit facilities. The refinancing included both the replacement of the existing revolving credit facility together with the pay-down of approximately half of its higher rate senior secured notes. The company said it expects that the refinancing will provide it more flexibility and lead to a reduction in its ongoing borrowing costs.

The new credit agreement is a $316 million 5-year credit facility. It consists of a $275 million revolver, an asset-based facility with borrowings based on inventory and receivables, and a $41 million term loan, secured by certain of Unified’s real property.

Institutions participating in the financing are Wells Fargo Capital Finance (lead), BMO Harris Bank, Bank of America, Union Bank, PNC and Bank of the West. Concurrent with the new credit facility is a partial pay down ($50 million) of the company’s fixed rate senior secured notes with the remaining notes maturing in January 2016.

“By leveraging our significant asset base and limiting the extent of financial covenants within the agreements, we expect much greater flexibility and overall efficiency in the day-to-day operation of our business. We are confident this financing will provide the foundation to execute on our initiatives and we appreciate the support received from our lending group,” said Bob Ling, president and chief executive officer, Unified Grocers.

Commerce, CA-based Unified Grocers is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States.