The three-year line matures in April 2004 and replaces its previous line scheduled to mature in April 2003. A syndicate of 11 banks is providing the facility. Wachovia Securities, Inc. was the sole lead arranger for both lines of credit and is the administrative agent.

With the new credit agreement, Post will have the flexibility to buy back stock in a planned repurchase program. In a prepared statement, Post CFO R. Gregory Fox says Post will continue its plans to scale back annual development expenditures from about $400 million to $150 million to $250 million.

With the various steps it has taken since October 2000, Post has reduced its variable debt rate to 21% of outstanding debt at Dec. 31, 2000 compared to 43% at Sept. 30, 2000. The company began the new year with $18 million outstanding on its line of credit. Of its $259 million of variable rate debt outstanding at year-end, $236 million comprised tax exempt notes capped at 5%.