UNFI Announces Proposed Repricing of Senior Secured Term Loan

Rhea-AI Summary

United Natural Foods, Inc. (NYSE: UNFI) announced a repricing transaction for its senior secured term loan facility, aiming to reduce the Applicable Margin by 50 to 75 basis points. The closing of this repricing is expected in February 2021, pending market conditions. UNFI is recognized as North America's largest food wholesaler, providing a diverse range of products to various retail outlets and food service customers. The company emphasizes its commitment to delivering quality food and choices to its customers across the continent.

Positive

• Proposed reduction in Applicable Margin by 50 to 75 basis points.
• Transaction expected to close in February 2021, suggesting positive financial restructuring.

Negative

• None.

United Natural Foods, Inc. (NYSE: UNFI) (“UNFI”) today announced that it launched a repricing transaction of its senior secured term loan facility that targets a reduction in the Applicable Margin (as defined in the term loan agreement) of 50 to 75 basis points.

The closing of the proposed repricing is expected to occur in February 2021 subject to market and other customary conditions.

About United Natural Foods

UNFI is North America's premier food wholesaler delivering the widest variety of products to customer locations throughout North America including natural product superstores, independent retailers, conventional supermarket chains, ecommerce retailers, and food service customers. By providing this deeper ‘full-store’ selection and compelling brands for every aisle, UNFI is uniquely positioned to deliver great food, more choices, and fresh thinking to customers everywhere. Today, UNFI is the largest publicly-traded grocery distributor in America. To learn more about how UNFI is Moving Food Forward, visit www.unfi.com.

Cautionary Language Regarding Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. Examples of these statements include statements regarding the proposed closing and the proposed terms of the amendment. The risks and uncertainties which could impact these statements include the market for secured debt and those described in the Company’s filings under the Securities Exchange Act of 1934, as amended, including its annual report on Form 10-K for the year ended August 1, 2020 filed with the Securities and Exchange Commission (the “SEC”) on September 29, 2020 and other filings the Company makes with the SEC, Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210126005972/en/

FAQ

What is the recent announcement by United Natural Foods (UNFI)?

UNFI announced a repricing transaction of its senior secured term loan facility to reduce the Applicable Margin by 50 to 75 basis points.

When is the proposed closing date for UNFI's loan repricing?

The proposed closing date for the loan repricing is expected in February 2021, subject to market conditions.

How does UNFI position itself in the market?

UNFI is the largest publicly-traded grocery distributor in America, delivering a wide variety of products to various customer locations.

What are the implications of UNFI's loan repricing for investors?

The repricing aims to improve financial conditions by lowering borrowing costs, which can be viewed positively by investors.