Penn Traffic Gets Extensions on Credit Agreements

Penn Traffic Co. here said it has secured extensions to its existing credit agreements, which were set to expire April 13.

SYRACUSE, N.Y. — Penn Traffic Co. here said it has secured extensions to its existing credit agreements, which were set to expire April 13. The new agreement with GE Corporate Lending was extended until April 13, 2010; and the agreement with Kimco Capital Corp. was extended until April 13, 2009. The company said it can extend the Kimco agreement for one additional year if certain financial ratios and other conditions are met. The existing agreements provide for $162 million of available credit, including a $130 million revolver, a $6 million term loan and a $26 million supplemental real estate facility. In return for the extensions, the company said it agreed to pay fees totaling $953,200 to its lending partners; to extend the agreement with Kimco through 2010, it said it will be required to pay an additional extension fee based on outstanding borrowings as of April 13, 2009. According to Gregory J. Young, president and chief financial officer, "The successful extension of our credit agreements provides Penn Traffic with the necessary flexibility to continue to stabilize the business, invest in our core retail store portfolio, improve our customers' shopping experience and improve our overall offering in the markets we serve."

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