Tractor Supply closes $700 million five-year senior credit facility

By Tali Rackner

Norfolk, Va., Feb. 23 – Tractor Supply Co. entered into a $700 million five-year senior unsecured credit facility on Friday with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement consists of a $200 million term loan and a $500 million revolving credit facility. The revolver has a sublimit of $50 million for swingline loans.

The facility contains an up to $300 million accordion feature.

Interest on both term loans and revolving loans is equal to Libor plus 50 basis points to 112.5 bps, based on the company’s leverage ratio. Interest at closing is Libor plus 62.5 bps.

The commitment fee is 10 bps initially and ranges from 7.5 bps to 20 bps.

Financial covenants require Tractor Supply to maintain a minimum fixed charge coverage ratio of 2 times and a maximum leverage ratio of 4 times.

Regions Bank is the syndication agent, and Bank of America, NA, Fifth Third Bank and U.S. Bank NA are co-documentation agents. Wells Fargo Securities, LLC and Regions Capital Markets are joint lead arrangers and bookrunners.

Tractor Supply is a Brentwood, Tenn.-based retail farm and ranch store chain.

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