Sprouts Farmers Market completes new credit facility

Phoenix -- Sprouts Farmers Market said it has completed a new five-year, $450 million revolving credit facility to replace its existing term loan and revolving credit facility.



The company will utilize the initial drawing of $260 million under the new credit facility to pay off its existing $258 million term loan and transaction costs associated with the refinancing. Upon the completion of refinancing, Sprouts will have approximately $260 million of total debt and $2.5 million of letters of credit outstanding under the new facility, which will mature on April 17, 2020.



"This refinancing reflects the significant progress we have made in deleveraging the company," said Amin Maredia, CFO of Sprouts Farmers Market, which operates some 200 stores. "While we plan to continue to self-fund our targeted 14 percent unit growth, this new facility preserves Sprouts' financial flexibility and reduces our ongoing debt service expense."