B&G Foods announces closure of its credit agreement refinancing.
M2 EQUITYBITES-June 6, 2014-B&G Foods announces closure of its credit agreement refinancing
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B&G Foods Inc (NYSE:BGS), a manufacturer, seller and distributor of a diversified portfolio of branded shelf-stable foods, disclosed today the closure of a refinancing of its senior secured credit facility, by terminating and replacing it with a new senior secured credit facility.
The new facility comprises of USD300m of tranche A term loans and a USD500m revolving credit facility and the company used the proceeds of the new tranche A term loans and USD46m of initial borrowings under the new revolving credit facility, to repay USD122m of tranche A term loans and USD215m of revolving credit loans under the existing credit agreement together with the transaction fees and expenses.
Further, any future borrowings under the new revolving credit facility that matures on 5 June 2019, will be used for general corporate purposes.
Additionally, the credit agreement refinancing reduces the company's cost of debt and provides its capital structure with more flexibility, it said and added that the new credit facility lowers the interest rate payable on the tranche A term loans and revolving loans by 100 basis points and increases the revolving credit commitments to USD500m.
Finally, immediately after the company closure of the refinancing, it has USD346m of outstanding borrowings under the new credit facility and the available borrowing capacity under the new revolving credit facility, net of outstanding letters of credit, is about USD454m, it mentioned.
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