LOS ANGELES — Unified Grocers here said Wednesday it has completed two long-term credit agreements at favorable terms — a five-year revolving credit facility for the company, and a new three-year credit line for its wholly owned finance company, Grocers Capital Co.
Unified said the revolving credit facility will be used to refinance its existing line of credit, though the borrowing capacity remains at $275 million and extends until October 2015. However, the company said it seemed prudent to refinance the agreement a year before it matured to eliminate future risks "that could develop during these uncertain and volatile times."
The credit facility for Grocers Capital has a borrowing capacity of $15 million and was made so the company could extend loans to its retail members, it explained.
According to Al Plamann, president and chief executive officer, "While interest rates remain near historic lows, this is a very challenging environment in which to seek credit — perhaps tougher and more restrictive than ever before. Banks continue to be very careful and cautious about lending money. They prefer to do business with companies that have strong balance sheets, and I'm very pleased we have easily met this requirement."
Financing for the revolving credit line came from Wells Fargo and seven other banks; financing for the new credit line came from California Bank & Trust, with two other institutions participating.