Kroger Announces New Credit Facility
The Kroger Co. has negotiated a new $2 billion revolving credit facility, replacing a $2.5 billion facility that would have matured in November 2011.
The facility will be used for general corporate purposes, including commercial paper backstop. Twenty-three financial institutions will participate in the facility. The bank group is led by Bank of America and Citibank as administrative and syndication agents, respectively. The group also includes the Royal Bank of Scotland, U.S. Bank and Wells Fargo Bank as co-documentation agents.
“We are very pleased with the clear showing of support and confidence from the banking community, particularly during a challenging credit market,” said Scott Henderson, Kroger’s VP and treasurer. “This new revolving credit facility provides Kroger with the financial flexibility to continue executing its business and financial strategies.”
Cincinnati-based Kroger employs more than 334,000 associates at 2,468 supermarkets and multidepartment stores in 31 states under two dozen local banner names including Kroger, City Market, Dillons, Jay C, Food 4 Less, Fred Meyer, Fry’s, King Soopers, QFC, Ralphs and Smith’s.