Universal Corporation closed a new $1.4 billion senior unsecured credit facility on December 9, 2025, replacing its prior $1.15 billion line. The new facility is structured as a $780 million revolving credit component, a $275 million five‑year term loan, and a $345 million seven‑year term loan, with JPMorgan Chase Bank, N.A., Truist Securities, Inc., and AgFirst Farm Credit Bank serving as joint bookrunners and lead arrangers.
The refinancing is designed to bolster Universal’s balance sheet by increasing liquidity, reducing borrowing costs, and expanding its banking relationships. CEO Preston Wigner said the new facility “strengthens our Company by increasing liquidity and financial flexibility, lowering borrowing costs, and expanding our banking relationships,” positioning the firm to advance strategic priorities and deliver long‑term value.
Prior to the refinancing, Universal’s debt‑to‑equity ratio stood at 0.71 and total debt was $1.28 billion. The $250 million increase in available credit improves leverage and extends maturities, giving the company more runway to fund growth initiatives and reduce debt over time.
Universal operates through Tobacco Operations and Ingredients Operations. In the second quarter of fiscal 2025, the company reported $754.18 million in revenue—up 6% year‑over‑year—and net income of $34.17 million, translating to diluted EPS of $1.36 versus $1.03 a year earlier. For the full fiscal year, revenue reached $2.9 billion, up 7% YoY, with operating income of $232 million and net income of $95 million, diluted EPS $3.78. The new credit facility provides the working‑capital flexibility needed to support the expansion of the ingredients business while maintaining the tobacco segment’s profitability.
Wigner emphasized that the liquidity boost will be used to accelerate debt reduction and fund future capital investments, reinforcing Universal’s long‑term growth strategy. The company’s focus on maximizing its tobacco business, growing its ingredients division, and strengthening its organization is supported by the enhanced financial flexibility.
No specific market reaction data were identified for this refinancing, but the transaction signals robust financial health and positions Universal to pursue growth opportunities with greater confidence.
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