Boulder Brands announced it closed on a new senior secured credit facility. The new $330 million facility consists of a $250 million seven-year term loan and an $80 million five-year revolving credit facility.
The company indicated that Citigroup led the banking transaction in a three-bank consortium.
The proceeds will be used to refinance the company’s existing $280 million senior secured credit facility, of which $242.2 million was outstanding immediately prior to the refinancing, and for general corporate purposes. The overall effective interest rate on the new facility is 5.25%, 225 basis points below the previous facility. This will result in approximately $5 million in annual cash interest savings based on debt outstanding immediately prior to the refinancing.
“We are delighted with the strong demonstration of support and the ongoing confidence in our outlook by the banking community,” stated Christine Sacco, the Boulder Brands chief financial officer. “The favorable market environment enabled us to lower the company’s overall interest rate and secure less restrictive covenants, which will provide more financial flexibility.”
Boulder Brands is committed to providing superior tasting, solution-driven products. The company’s health and wellness platform consists of brands that target specific consumer needs.