NEW ALBANY, Ohio – Bob Evans Farms, Inc. entered into a $750 million amended revolving credit facility effective Jan. 2.
The loan is a syndicated secured revolving credit facility offered by a group of lenders. It includes 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.
“We are pleased with the closing of the amended credit facility,” said Steve Davis, chairman and CEO. “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,” Davis added. “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.”