Mr. Paul Jewer reports
HIGH LINER FOODS ANNOUNCES FAVOURABLE AMENDMENTS TO DEBT FACILITIES
High Liner Foods Inc. has concluded
amendments to its senior secured term loan (term loan B) and
asset-based revolving facility (ABL facility).
The principal amendments to the term loan B are as follows:
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Increased the principal amount from $250-million to $300-million;
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Extended the term on the loan from December, 2017, to April, 2021;
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Reduced applicable interest rates for loans under the facility from
LIBOR (London interbank offered rate) plus 3.5 per cent (with a 1.25-per-cent LIBOR floor) to LIBOR plus 3.25 per cent (with a
1-per-cent LIBOR floor);
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Leverage ratio financial covenant was removed;
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Increased capacity and flexibility for acquisitions, investments,
distributions, capital expenditures and operational matters.
In addition, the ABL facility was amended concurrently with the term
loan B amendments. The principal ABL facility amendments include lower
interest costs, extending the term from December, 2016, to April, 2019,
and increased capacity and flexibility for acquisitions, investments,
distributions, capital expenditures and operational matters.
The company plans to use the proceeds from the increase in the term loan
B to pay down a portion of the ABL facility.
RBC Capital Markets acted as lead arranger and bookrunner for the debt
amendments.
We seek Safe Harbor.
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