2026-04-02 12:05:37
United Natural Foods, Inc. Amends Loan Agreement for $2.4 Billion Credit Facility
Expected Stock impact: Slightly Positive
On April 1, 2026, United Natural Foods, Inc. (the "Company") announced that it, along with SUPERVALU INC., UNFI Wholesale, Inc., and UNFI Distribution Company, LLC (collectively referred to as the "U.S. Borrowers"), entered into an amended and restated loan agreement. This agreement, known as the "Amended and Restated ABL Loan Agreement," provides for a secured asset-based revolving credit facility amounting to up to $2.4 billion. This facility includes a sublimit of $100 million for borrowings in Canadian dollars and a First In, Last Out ("FILO") tranche of incremental ABL loans totaling $130 million. The new agreement replaces the existing $2.6 billion ABL Credit Facility established on June 3, 2022. Under the new terms, the Borrowers have the option to request an increase in the aggregate amount of the ABL Credit Facility by up to $750 million, contingent upon certain conditions being met. The interest rates for borrowings will be based on either the Base Rate or Term SOFR, with specific margins depending on the Daily Average Availability. The facility is set to expire on April 1, 2031, or earlier under certain conditions. The agreement also imposes a fixed charge coverage ratio requirement of at least 1.0 to 1.0 if the adjusted aggregate availability falls below specified thresholds. This amendment is expected to enhance the Company's liquidity position, allowing for greater operational flexibility and potential growth opportunities.
