Weis Markets has amended its revolving credit agreement with Wells Fargo, establishing an unsecured credit line with $30 million in committed capacity and the possibility of up to $70 million more at the lender’s discretion. The amended facility is scheduled to run through October 1, 2030. The agreement sets borrowing costs, fees and financial and operating restrictions, but does not indicate that Weis borrowed money when it was amended.
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Credit capacity: The revolving facility has a principal limit of $30 million. Wells Fargo may make an additional $70 million available at its discretion; that additional amount is not committed funding. Borrowings and outstanding letters of credit count against the applicable facility limit.
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Maturity and repayment: The facility is scheduled to mature on October 1, 2030, unless it ends earlier under the agreement. No principal payments are due before maturity, although Weis can voluntarily repay loans or reduce the commitment subject to the agreement’s conditions. If outstanding principal exceeds the commitment, Weis must repay the excess.
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Interest and fees: Loans bear interest at 1 percentage point above Daily Simple SOFR. If that rate cannot be determined or used, the rate switches to prime. During a default, Wells Fargo can raise the rate by 2 percentage points above the otherwise applicable rate. Weis also pays a 0.25% annual fee on the average unused portion of the commitment, plus letter-of-credit fees and customary issuance charges.
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Letters of credit: The facility can support standby letters of credit, with outstanding letter-of-credit liabilities capped at $30 million. Loans plus letter-of-credit liabilities cannot exceed the commitment.
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Financial covenant: Weis must maintain at least $175 million of EBITDA, measured on a trailing 12-month basis at the end of each fiscal quarter. The agreement defines EBITDA using net income, with specified adjustments for interest, taxes, depreciation and amortization, certain asset-sale results and certain non-recurring items.
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Operating restrictions and defaults: The agreement restricts certain actions, including taking on debt, creating liens, making investments or acquisitions, transferring assets, merging, changing the nature of the business or undergoing a change in control. Defaults can include missed payments, covenant breaches, cross-defaults on other material debt, bankruptcy and a change in control.
The amendment provides Weis with revolving financing capacity, not an announced cash infusion. The additional $70 million is discretionary rather than assured, and access to the facility is subject to its covenants and other terms.