Pinnacle Foods repriced its existing $550 million term loan I, issued in connection with the Boulder Brands acquisition earlier this year with Barclays serving as administrative agent. The transaction reduced the interest rate spread on the term loan by 25 basis points to LIBOR+275 basis points. It also lowered the LIBOR floor to 0.0%, which was previously set at 0.75%.

As a result, the company expects interest savings over the life of the loan, which matures in January of 2023, to total approximately $10 million. Expected interest savings in 2016 are estimated to be less than $1 million. The company expects to incur approximately $1 million of one-time expenses related to this event, which will be treated as an item affecting comparability.

As more fully described below, the refinancing consists of senior secured credit facilities totaling $1.78 billion, comprised of a senior secured term loan facility in the aggregate principle amount of $1.63 billion due 2020 and a revolving credit facility of $150 million due 2018. In addition, $350 million aggregate principle amount of senior unsecured notes due 2021 at 4.875% were issued.

The proceeds of the $1.63 billion term loan and the $350 million of notes will be used to repay all amounts currently outstanding under the previously existing terms loans and 8.25% notes and to pay fees and expenses.

Commenting on the repricing, Executive Vice President and Chief Financial Officer Craig Steeneck stated, “Amidst an improving interest rate environment, along with strong lender demand, we successfully repriced our term loan related to the Boulder Brands acquisition. This opportunistic repricing will result in significant savings over the life of the loan.”

Bank of America Merrill Lynch acted as arranger for the term loan repricing.