Prior to the closing, on 27 October 2010, TreeHouse amended and restated its revolving credit facility. The Amended and Restated Credit Agreement extends the maturity of the company’s revolving credit facility from 31 August 2011 until 27 October 2015, and increases the amount available under the revolving credit facility from $600m to $750m.
The covenants under the Amended and Restated Credit Agreement are substantially consistent with those contained in the company’s prior credit agreement. The interest rate under the Amended and Restated Credit Agreement is based on the company’s consolidated leverage ratio, and will be determined by either LIBOR plus a margin ranging from 1.50% to 2.50%, or a base rate (as defined in the Amended and Restated Credit Agreement) plus a margin ranging from 0.50% to 1.50%.
The proceeds of the Amended and Restated Credit Agreement were used to refinance the company’s existing credit facility, fund the acquisition purchase price, and pay related transaction costs.
Upon closing of the ST Specialty Foods transaction, approximately $200m of the Amended and Restated Credit Agreement remained undrawn and available.
Source: TreeHouse Foods
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