The leaders of Tractor Supply late last week added $200 million of padding to their balance sheet by expanding their lending arrangement with a group led by Wells Fargo Bank.
Brentwood-based Tractor Supply, which runs more than 2,000 stores in 49 states, on Thursday exercised the accordion option on its 2016 credit facility with Wells Fargo and others. The company’s new $200 million loan will mature in two years, and its proceeds will help the company, which had revenues of more than $8.3 billion last year, absorb the impact of the economic turmoil caused by the spread of COVID-19.
Under its senior credit facility, Tractor Supply finished 2019 with about $230 million in term loans, $15 million in revolving debt and $32 million in letters of credit. New CEO Hal Lawton and his team have plenty of capacity under the revolver, which can grow to $500 million. Tractor Supply ended 2019 with less than $400 million in total long-term debt, which equated to about 25 percent of its shareholders’ equity.
Shares of Tractor Supply (Ticker: TSCO) closed Wednesday trading at $72.51, up nearly 3 percent on the day. They have lost nearly 30 percent of their value in the past month.
Earlier this week, Ryman Hospitality Properties and Brookdale Senior Living officials said they've made similar moves to improve their liquidity. Combined, the two companies drew down more than $570 million.
This post originally appeared in our sister publication, the Nashville Post.