Darden Restaurants entered into a $1.5 billion revolving credit agreement on October 22, 2026, replacing its previous $1.25 billion arrangement. The Darden credit facility increases committed borrowing capacity by $250 million and matures on October 22, 2031.
Key Takeaways
- The new revolving commitment is 20% larger than the previous facility.
- Darden reported no amounts outstanding under the old agreement when it was terminated.
- Borrowing costs and fees depend in part on Darden’s credit ratings.
Table of Contents
- Darden credit facility adds borrowing flexibility
- Pricing and restrictions remain part of the agreement
- The previous agreement was terminated
- Conclusion
Darden credit facility adds borrowing flexibility
The five-year agreement expands the restaurant operator’s financing capacity without itself establishing that Darden has borrowed the full amount. A revolving commitment provides access to funding; it is distinct from debt actually drawn.
Permitted uses include working capital, capital expenditures, refinancing certain indebtedness, certain acquisitions and general corporate purposes. Those provisions give Darden several funding options but do not announce a specific acquisition or spending commitment.
| Item | Details |
|---|---|
| Administrative agent | Bank of America, N.A. |
| Security | Senior unsecured commitment |
| Letters of credit | $150 million sublimit within the facility |
Pricing and restrictions remain part of the agreement
Interest on borrowings will reflect prevailing rates under the agreement and, in part, Darden’s credit ratings. Interest pricing and fees may change if the rating on its long-term senior unsecured debt changes, so the larger commitment does not establish a fixed borrowing cost.
The agreement also includes financial covenants, restrictions on liens and subsidiary debt, and customary events of default. Access to the facility therefore remains subject to contractual conditions.
The previous agreement was terminated
The new arrangement amends and restates the prior revolving agreement, which was originally dated October 23, 2023. Darden’s September 2024 credit agreement amendment documents the earlier $1.25 billion facility and Bank of America’s role as administrative agent; that historical filing does not establish the terms of the 2026 replacement.
Darden terminated the prior facility when the new agreement took effect and reported no amounts outstanding under it at termination. The $250 million increase is therefore a change in committed revolving capacity, not a reported increase of the same amount in outstanding borrowings.
Conclusion
Darden has secured a larger revolving commitment rather than announced a full drawdown. The agreement’s confirmed maturity is October 22, 2031; any use of the available funding remains distinct from the capacity now in place.
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