PetIQ entered into a new $300 million term loan and a new $125 million asset-based revolving line of credit. According to an 8K filed with the SEC, KeyBank is the administrative agent and collateral agent for the line of credit and Jefferies Finance is the administrative agent and collateral agent for the term loan.
The credit facilities replace PetIQ’s existing term loan and ABL facilities and increases borrowing capacity by approximately $109 million. The new term loan, priced at L+425 with a 0.5% LIBOR floor, has a maturity of April 2028 and contains no financial covenants. The new ABL, priced at L+125 to L+175, has a maturity of April 2026.
The credit facilities provide improvements in debt covenants, increased operational flexibility and incremental debt baskets to facilitate future growth. In addition to replacing previous facilities, a portion of the proceeds were used to fully repay $27.5 million of PetIQ’s unsecured VIP Seller Notes bearing interest at 6.75%.
“We are pleased to have partnered with both Jefferies Finance LLC and Key Bank National Association on these new credit facilities, which offer more favorable terms, a 125-basis point decrease in our annual interest rate on our term loan and greater financial flexibility to support our future growth,” John Newland, CFO of PetIQ, said.
PetIQ is a pet medication and wellness company.
