Sprouts Farmers Market Announces Credit Facility Revision
PHOENIX – July 25, 2025 — Sprouts Farmers Market, Inc. (Nasdaq: SFM), a leading specialty retailer focused on fresh, natural, and organic products, has successfully closed a new $600 million revolving credit facility (the “Revolving Credit Facility”) to strengthen its capital position and support the company’s long-term strategic goals.
The new credit facility, finalized under a credit agreement dated July 25, 2025, replaces the company’s prior $700 million revolving credit facility. While slightly smaller in size, the updated facility carries revised terms that offer more flexibility and are better aligned with the company’s evolving financial strategy.
The Revolving Credit Facility features a commitment maturity date of July 2030, offering a five-year horizon of assured access to capital. Key terms of the facility include updated pricing mechanisms on drawn and undrawn balances, as well as enhancements to financial covenants to provide Sprouts with greater flexibility to operate, invest, and expand without being hindered by restrictive conditions.
As of the closing date, Sprouts reported that it had no outstanding borrowings under the new credit facility. However, the company had $23 million in letters of credit issued, leaving approximately $577 million in available liquidity.
“Sprouts continues to generate robust cash flow from operations, and we remain committed to funding our ongoing operations and expansion efforts through internally generated capital,” said Curtis Valentine, Chief Financial Officer of Sprouts Farmers Market. “That said, securing this new revolving credit facility is a strategic move to ensure we maintain the financial agility needed to support our growth trajectory and respond to future opportunities or challenges. This facility enhances our liquidity profile and supports our commitment to disciplined financial management.”
The credit facility was arranged by a syndicate of major financial institutions. JPMorgan Chase Bank, N.A. served as administrative agent, issuing bank, and swingline lender. Joint lead arrangers and joint bookrunners for the transaction included JPMorgan Chase Bank, N.A., Truist Securities, Inc., and PNC Capital Markets LLC. Additional banking partners included Truist Bank and PNC Bank, National Association, as co-syndication agents. Co-documentation agents for the facility included Bank of America, N.A., BMO Bank, N.A., and U.S. Bank, National Association.
The updated facility offers a solid financial foundation as Sprouts accelerates its store expansion strategy and deepens its focus on health-conscious consumers. The retailer has been pursuing a differentiated business model that emphasizes fresh produce, minimally processed items, and private label innovation. With over 400 stores across the U.S., Sprouts is on track to meet its long-term goal of opening 30 to 35 new locations annually over the next several years.
In addition to supporting day-to-day operational needs, the Revolving Credit Facility may be used for various strategic purposes, including working capital, capital expenditures, share repurchases, or other corporate initiatives. Sprouts’ continued focus on prudent capital allocation and financial discipline has earned it investor confidence and positioned the company as a strong performer in the competitive grocery landscape.
The retailer’s proactive approach to managing its capital structure reflects broader trends in the retail industry, where companies are placing a premium on flexibility, liquidity, and readiness to respond to changing market conditions. Amid inflationary pressures, shifting consumer preferences, and increasing competition, access to reliable credit remains a vital component of long-term resilience and success.
Sprouts Farmers Market’s recent performance has been supported by favorable tailwinds, including heightened consumer interest in healthier food options, a growing emphasis on sustainability, and increasing demand for transparency in food sourcing. The company’s strategic investments in supply chain efficiency, in-store experience, and digital engagement have positioned it to capitalize on these trends.
Industry analysts view the new credit facility as a vote of confidence in the company’s outlook and financial strength. “Sprouts’ ability to secure long-term financing with favorable terms and a high degree of covenant flexibility speaks volumes about its strong balance sheet and operational performance,” noted one equity analyst.
As Sprouts continues to navigate a dynamic economic environment, the new credit facility adds an extra layer of assurance and flexibility, reinforcing the company’s financial stability and supporting its mission to inspire healthier living for all.
About Sprouts Farmers Market, Inc.
Headquartered in Phoenix, Arizona, Sprouts Farmers Market is one of the fastest-growing retailers in the country, providing affordable access to natural and organic foods. With a focus on innovation, quality, and community, Sprouts aims to help customers live healthier lives by offering fresh, responsibly sourced products and expert guidance in a welcoming environment.
