UNITED NATURAL FOODS INC 8-K

What Happened
United Natural Foods, Inc. (UNFI) announced an amended and restated asset-based revolving credit facility (the Amended and Restated ABL Credit Facility) effective April 1, 2026. The facility provides up to $2,400 million in committed availability (including a U.S. dollar equivalent $100 million sublimit for Canadian-dollar borrowings) and incorporates a $130 million FILO (first-in, last-out) tranche. The amendment restates and replaces the company’s prior $2,600 million ABL facility dated June 3, 2022. The filing (Item 2.03) also notes that this amendment creates a direct financial obligation of the company.

Key Details

• Total commitments: up to $2,400 million, with an optional increase request of up to $750 million (subject to lender commitments and conditions). Effective date: April 1, 2026.
• FILO tranche: $130 million incremental ABL loans (FILO = First In, Last Out).
• Interest and fees: borrowings priced at Borrower’s option of (i) Base Rate + 0.125% (≥50% availability) or +0.375% (<50% availability) or (ii) Term SOFR + 1.125% (≥50% availability) or +1.375% (<50% availability). Unused commitments fee: 0.20% per year. From April 1, 2026 through the end of the first full fiscal quarter after that date, margins are fixed at Base Rate + 0.125% or Term SOFR + 1.125% at the borrower’s option.
• Security, covenants and expiry: obligations are guaranteed by most wholly owned subsidiaries and secured by a first-priority lien on accounts receivable, inventory and related assets and a second-priority lien on other assets. Facility expiry is the earlier of April 1, 2031 or certain dates tied to other company maturities (with exceptions if reserve availability is established). A fixed charge coverage covenant of at least 1.0:1.0 applies if adjusted availability falls below the greater of $204 million or 10% of the Borrowing Base. Borrowing Base is calculated from specified percentages of eligible receivables, inventory liquidation value and pharmacy-related receivables.

Why It Matters
This amendment defines UNFI’s near-term liquidity and borrowing costs by setting committed availability, pricing tied to availability and market rates (Term SOFR/Base Rate), and security and covenants that limit certain corporate actions if breached. For investors, the facility affects the company’s ability to fund operations, respond to working capital needs, and refinance other obligations; the fixed charge coverage covenant and borrowing-base mechanics are important constraints if availability falls. The facility’s maturity window (through 2031, subject to triggers) and the option to request additional capacity (up to $750M) are also relevant to UNFI’s longer-term capital planning.