RICHMOND, Va., Jan. 6, 2015 /PRNewswire/ -- Universal
Corporation (NYSE: UVV) disclosed in a filing with the Securities
and Exchange Commission on December 31,
2014, that the Company has executed a new bank credit
facility agreement which consolidates and extends maturities of its
short-term revolving credit and long-term borrowing
facilities. J.P. Morgan Securities LLC, SunTrust Robinson
Humphrey, Inc., and AgFirst Farm Credit Bank led the transaction.
The new agreement includes a $430
million 5-year revolving credit facility, a $150 million 5-year term loan, and a $220 million 7-year term loan. The
revolving credit facility contains terms and conditions that are
substantially similar to the Company's previous revolving credit
facility. The term loans, which were fully funded at closing,
require no amortization and are prepayable without penalty prior to
maturity. The facilities include a customary accordion
feature allowing for additional borrowings of up to $100 million under certain conditions.
Currently, borrowings under the agreement bear interest at variable
rates based on LIBOR plus a margin of 1.50% to 1.75%.
David C. Moore, Senior Vice
President and Chief Financial Officer, stated, "I am pleased to
announce this major refinancing which provides us with continued
flexible and efficient funding mechanisms for our business.
We have worked diligently to maintain a strong balance sheet, and
the new facilities deliver well-priced financial resources for the
next 5 to 7 years. I also want to express our appreciation
for the support and confidence shown by our bank group."
The Company recently repaid its $100
million 6.25% medium-term public notes, which matured on
December 1, 2014, through a
combination of cash on hand and borrowings under the previous
revolving credit facility. Over the last two fiscal years,
Universal has reduced long-term debt by more than $50 million, while providing more than
$60 million in combined annual
dividend payments for common and preferred shareholders.
More information regarding this transaction can be found in the
Company's Current Report on Form 8-K filed December 31, 2014. This report should be
read in conjunction with the Company's Annual Report on Form 10-K
for the fiscal year ended March 31,
2014, and other documents that the Company files with the
Securities and Exchange Commission.
Headquartered in Richmond,
Virginia, Universal Corporation is the leading global leaf
tobacco supplier and conducts business in more than 30
countries. Its revenues for the fiscal year ended
March 31, 2014, were $2.5 billion. For more information on Universal
Corporation, visit its website at www.universalcorp.com.
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SOURCE Universal Corporation