Daily News: August 5, 2014

Rabobank Agents Penford $170MM Credit Facility

Penford closed on new $170 million credit facilities, replacing the company’s prior revolving credit agreement. The facilities consist of a $145 million five-year revolving credit agreement and a $25 million six-year delayed draw term loan.

The credit facilities were arranged by Rabobank International as administrative agent and KeyBank as syndication agent. The following additional lenders also participated in the transaction: JPMorgan Chase Bank, The PrivateBank and Trust Company, First Midwest Bank, GreenStone Farm Credit Services, BB&T, AgStar Financial Services and Farm Credit Services of America.

“These new credit facilities will provide us with increased capacity, greater flexibility and lower costs in implementing our strategic programs to build shareholder value,” said Tom Malkoski, Penford CEO. “We are pleased that the participating lenders have recognized the strength of our current business model and the Company’s attractive prospects for continued growth. We intend to use these new facilities to fund additional capital investments and acquisitions that will expand our specialty businesses in food ingredients and high value industrial products.”

Penford develops, manufactures and markets specialty ingredients systems for a variety of food and industrial products.