Concurrent with the closing of this investment, Diamond will amend its credit agreement with its existing lenders. The recapitalization will result in a capital structure that supports the Company’s long term strategy as well as the execution of its current business plan.
The recapitalization will allow Diamond to further strengthen the Company’s leadership position in the walnut industry, continue the growth of its snack business and reduce the amount of existing bank debt. The transactions are expected to close by the end of May.
Brian Driscoll, Diamond Foods’ president and CEO, said: “Oaktree has an exceptional track record of supporting the growth of leading companies in the consumer sector. Their expertise and resources will be invaluable as we solidify our market position in the walnut industry and seek to continue to grow our snack brands.
“In connection with Diamond’s thorough review of capital alternatives, the company received interest from a number of top tier investment firms.
“We are very pleased with our decision to partner with Oaktree, an experienced investor with an outstanding reputation. Looking forward, our balance sheet strength will provide a solid foundation from which to build as we position Diamond for the opportunities ahead that can deliver value to our shareholders, our growers and our customers.”
Source: Diamond Foods
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