Wells Fargo, BofA Agent Innophos Facility Amendment
Innophos Holdings announced that it had amended and restated its senior secured credit facility with a group of bank lenders, increasing the company’s borrowing capacity to $325 million, while reducing interest rates for the next five years.
The offering was led by Wells Fargo Bank as administrative agent, and Bank of America as syndication agent.
The new Innophos credit facility features:
Simultaneously with initiating the new senior facility, Innophos entered into an interest rate swap, with a start date of December 31, 2012, changing the LIBOR exposure on $100 million of floating rate debt under the new senior facility to a fixed rate to maturity obligation of 0.9475%.
For the quarter ending December 31, 2012, the company expects to record a onetime charge to interest expense of approximately $1 million reflecting a write down of deferred financing costs related to the 2010 facility and higher interest rates incurred in December 2012 to facilitate the refinancing.
Neil Salmon, VP and CFO of Innophos, commented, “This new credit facility allows us to lock in favorable market interest rates for the next five years and provides us additional capacity to support our strategic objectives, including our ongoing investment plans.”
Innophos is an international producer of performance-critical and nutritional specialty ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets.