BofA, Rabobank Complete Dean Foods Refi
Dean Foods entered into a new $450 million senior secured revolving credit facility with Bank of America and Rabobank. The new agreement contains an accordion feature that allows the company, subject to certain conditions, to increase the amount of the revolving facility by up to $200 million. The new agreement will terminate on March 26, 2020. In addition, the company concurrently amended and restated its existing $550 million receivables securitization facility to extend the maturity through March 26, 2018, and conform the covenants to the new credit agreement.
“With the execution of the debt recapitalization, we now have an optimized $1 billion in total revolving facilities,” said Chris Bellairs, CFO of Dean Foods. Over a relatively short timeframe, we have increased accessible liquidity, obtained greater covenant flexibility, lengthened the Company’s maturity profile, and reduced pricing.”
“We are very pleased with negotiated terms and conditions of these facilities,” added Gregg Tanner, CEO of Dean Foods. “We now have a capital structure that is more appropriate for a company of our size and industry position and that gives us the flexibility to fund our operational and strategic objectives to generate long term shareholder value. We appreciate the support provided by Bank of America and Rabobank, our respective leads, and look forward to continuing our relationship with all of the institutions involved.”
Dallas-headquartered Dean Foods is a food and beverage company and the largest processor and direct-to-store distributor of fluid milk and other dairy and dairy case products in the United States.