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Get filing alertsUNFI refinances $2.6B credit facility into $2.4B facility maturing 2031
Filed April 2, 2026 · Period ending April 1, 2026 · ~2 min read
Key Changes
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UNFI reduced its asset-based revolving credit facility from $2.6B to $2.4B, cutting total commitments by $200M while extending maturity to April 2031. The facility retains a $130M FILO tranche and includes a $100M Canadian dollar sublimit.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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The facility includes springing maturity provisions: it could mature 91 days before UNFI's $500M term loan or 6.750% senior notes due 2028 if more than $100M remains outstanding on those obligations, creating refinancing risk if UNFI cannot pay down or refinance them first.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Interest pricing is availability-based: Term SOFR plus 1.125% to 1.375% depending on whether availability exceeds 50% of commitments. A 0.20% annual fee applies to unused commitments.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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UNFI must maintain a 1.0x fixed charge coverage ratio only when availability drops below the greater of $204M or 10% of the borrowing base, providing operational flexibility while imposing discipline if liquidity tightens.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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The borrowing base advances 90% against eligible receivables, 90% to 92.5% of inventory liquidation value, and 85% to 90% of pharmacy-related assets. Actual availability depends on working capital quality and lender reserves.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
UNFI refinanced its primary revolving credit facility, reducing total commitments from $2.6 billion to $2.4 billion while extending the maturity date to April 2031. The $200 million reduction in capacity suggests the company is rightsizing its credit line to match current operational needs, though it maintains the existing $130 million FILO tranche for additional flexibility.
The refinancing preserves UNFI's asset-based lending structure, with availability tied to receivables, inventory, and pharmacy assets.
The new facility introduces springing maturity provisions that create refinancing coordination risk: if UNFI's $500 million term loan or its 6.750% senior notes due 2028 have more than $100 million outstanding within 91 days of their respective maturities, the ABL facility could mature early unless the company maintains sufficient reserve availability. This linkage means UNFI must manage its 2028 notes and term loan maturities carefully to avoid triggering an early ABL maturity. The financial covenant—a 1.0x fixed charge coverage ratio—only activates when availability falls below $204 million or 10% of the borrowing base, providing operational flexibility under normal conditions but imposing discipline if liquidity deteriorates. For holders, the reduced commitment size and springing maturity provisions warrant monitoring UNFI's debt maturity schedule and liquidity position through 2028.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
Borrowings under the Amended and Restated ABL Credit Facility bear interest at rates that, at the Borrowers’ option, can be either: (i) Base Rate plus either (x) 0.125% (if the Daily Average Availability (as defined in the Amended and Restated ABL Loan Agreement) is greater than or equal to 50%) or (y) 0.375% (if the Daily Average Availability is less than 50%) or (ii) a Term SOFR rate plus (x) 1.125% (if the Daily Average Availability is greater than or equal to 50%) or (y) 1.375% (if the Daily Average Availability is less than 50%). Unutilized commitments under the Amended and Restated ABL Credit Facility are subject to a per annum fee of 0.20%.
Interest pricing is tied to availability levels: Term SOFR plus 1.125% to 1.375% or Base Rate plus 0.125% to 0.375%, with higher spreads when availability falls below 50%. The facility also carries a 0.20% annual commitment fee on unused amounts. This availability-based pricing grid incentivizes maintaining higher liquidity cushions.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify