Cal-Maine Foods, Inc. has entered into a Second Amended and Restated Credit Agreement with BMO Bank N.A. as the Administrative Agent, dated August 31, 2026. This agreement amends and restates the company’s prior credit facility that was originally dated November 15, 2021.
The new facility provides for a senior unsecured revolving credit facility with an initial aggregate principal amount of up to $250 million. This total includes a $25 million sublimit for standby letters of credit and a $25 million sublimit for swingline loans. The agreement also features an accordion feature, allowing the company to increase the facility by up to $250 million with the Administrative Agent's consent, through incremental senior term loans or an increase in revolving commitments.
As of September 1, 2026, the company reported no outstanding borrowings under the facility. However, $5.9 million in standby letters of credit had been issued. The credit facility has a term of five years and is set to mature on August 31, 2031.
The agreement includes customary covenants and financial requirements. These include a maximum Total Funded Debt to Capitalization Ratio tested quarterly of no greater than 50%. Additionally, the company must maintain a Minimum Tangible Net Worth of $1.5 billion plus 50% of consolidated net income (if positive) for each fiscal quarter after May 30, 2026. The facility also permits dividend payments and share repurchases, provided no uncured event of default exists and financial covenants are met on a pro forma basis.
