U.S. Bank Amends Inventure Foods Credit Agreement
Inventure Foods, a specialty food marketer and manufacturer, announced that it enhanced its long-term capital position by amending its existing credit agreement to extend the term and increase the capacity, while providing more favorable terms with its lending bank, U.S. Bank.
The amended revolving credit facility sets a maximum available credit limit of $30 million for the full term. This line of credit was increased from $25 million to $30 million, maturing in March 2018. The amended agreement also provides for an incremental $5 million line of credit for capital expenditures during fiscal 2013.
In addition to the amended credit agreement, the company has also secured an $8.5 million equipment term loan with U.S. Bank. This equipment term loan is collateralized by equipment at all three of the manufacturing facilities and also matures in March 2020.
The amended agreement provides financing at a lower variable interest rate that is tied to standard benchmark rates, and revises certain debt covenants to provide additional operating flexibility.
“This increase in total borrowing capability allows us to continue our focus on accelerating growth and enhancing our long-term visibility,” said Steve Weinberger, chief financial officer of Inventure Foods. “We are extremely pleased with the amended U.S. Bank agreement and the partnership we have been able to cultivate.”
Inventure Foods is a marketer and manufacturer of specialty food brands, including Boulder Canyon Natural Foods, Jamba, Seattle’s Best Coffee, Rader Farms, T.G.I. Friday’s and others.