GE Capital Arranges Papa Murphy’s New Facility
Papa Murphy’s Holdings announced it successfully closed on a new $132 million senior secured credit facility. The new five-year facility, consisting of a $112 million senior secured term loan and a $20 million revolving credit facility, replaces the company’s existing $122 million facility, which consisted of a $112 million senior secured term loan and a $10 million revolving credit facility.
The company said GE Capital Markets was sole lead arranger for the transaction. Citizens Bank was documentation agent and Wells Fargo Bank was syndication agent for the transaction.
The company said, based on current market conditions, the refinancing represents a 200 basis point reduction in borrowing costs and is estimated to reduce annual cash interest expense by approximately $2.25 million per year.
Vancouver, WA-based Papa Murphy’s is a franchisor and operator of the Take ‘N’ Bake pizza chain in the U.S., selling uncooked pizzas that customers bake at home. The company was founded in 1981 and currently operates over 1,400 franchised and company-owned fresh pizza stores in 38 states, Canada and United Arab Emirates.