B&G Foods Announces Closing of Credit Agreement Refinancing
December 16 2020 - 4:05PM
Business Wire
B&G Foods, Inc. (NYSE: BGS) announced today the closing of
its previously announced credit agreement refinancing. The
refinancing includes a $300.0 million add-on tranche B term loan
facility under the Company’s existing senior secured credit
facility. The tranche B term loan facility was issued at a price
equal to 99.00% of its face value. The add-on term loans, which
have the same terms as, and are fungible with, B&G Foods’
existing $371.6 million of tranche B term loans, will bear interest
at a rate of LIBOR plus 2.50%, with a 0.00% LIBOR floor, and have a
maturity date of October 10, 2026. As part of the refinancing, the
Company also increased the revolver capacity from $700.0 million to
$800.0 million and extended the maturity date of its revolving
credit facility from November 21, 2022 to December 16, 2025.
B&G Foods used the proceeds of the add-on term loans to
repay a portion of B&G Foods’ borrowings under its revolving
credit facility and to pay related fees and expenses.
About B&G Foods, Inc. Based in Parsippany, New
Jersey, B&G Foods and its subsidiaries manufacture, sell and
distribute high-quality, branded shelf-stable and frozen foods
across the United States, Canada and Puerto Rico. With B&G
Foods’ diverse portfolio of more than 50 brands you know and love,
including Back to Nature, B&G, B&M, Cream of Wheat, Crisco,
Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary’s, Maple Grove
Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria,
there’s a little something for everyone. For more information about
B&G Foods and its brands, please visit www.bgfoods.com.
Forward-Looking Statements Statements in this press
release that are not statements of historical or current fact
constitute “forward-looking statements.” Such forward-looking
statements involve known and unknown risks, uncertainties and other
unknown factors that could cause the actual results of B&G
Foods to be materially different from the historical results or
from any future results expressed or implied by such
forward-looking statements. In addition to statements that
explicitly describe such risks and uncertainties readers are urged
to consider statements labeled with the terms “believes,” “belief,”
“expects,” “projects,” “intends,” “anticipates,” “assumes,”
“could,” “should,” “estimates,” “potential,” “seek,” “predict,”
“may,” “will,” or “plans” and similar references to future periods
to be uncertain and forward-looking. Factors that may affect actual
results include, without limitation: whether and when the Company
will be able to realize the expected financial results and
accretive effect of the recently completed Crisco acquisition, and
how customers, competitors, suppliers and employees will react to
the acquisition; the impact of the COVID-19 pandemic on the
Company’s business, including, without limitation, the ability of
the Company and its supply chain partners to continue to operate
manufacturing facilities, distribution centers and other work
locations without material disruption; the Company’s substantial
leverage; the effects of rising costs for the Company’s raw
materials, packaging and ingredients; crude oil prices and their
impact on distribution, packaging and energy costs; the Company’s
ability to successfully implement sales price increases and cost
saving measures to offset any cost increases; intense competition,
changes in consumer preferences, demand for the Company’s products
and local economic and market conditions; the Company’s continued
ability to promote brand equity successfully, to anticipate and
respond to new consumer trends, to develop new products and
markets, to broaden brand portfolios in order to compete
effectively with lower priced products and in markets that are
consolidating at the retail and manufacturing levels and to improve
productivity; the risks associated with the expansion of the
Company’s business; the Company’s possible inability to identify
new acquisitions or to integrate recent or future acquisitions or
the Company’s failure to realize anticipated revenue enhancements,
cost savings or other synergies; tax reform and legislation,
including the effects of the U.S. Tax Cuts and Jobs Act and the
U.S. CARES Act; the Company’s ability to access the credit markets
and the Company’s borrowing costs and credit ratings, which may be
influenced by credit markets generally and the credit ratings of
the Company’s competitors; unanticipated expenses, including,
without limitation, litigation or legal settlement expenses; the
effects of currency movements of the Canadian dollar and the
Mexican peso as compared to the U.S. dollar; the effects of
international trade disputes, tariffs, quotas, and other import or
export restrictions on the Company’s international procurement,
sales and operations; future impairments of the Company’s goodwill
and intangible assets; the Company’s ability to successfully
complete the implementation of additional modules and the
integration and operation of a new enterprise resource planning
(ERP) system; the Company’s ability to protect information systems
against, or effectively respond to, a cybersecurity incident or
other disruption; the Company’s sustainability initiatives and
changes to environmental laws and regulations; and other factors
that affect the food industry generally. The forward-looking
statements contained herein are also subject generally to other
risks and uncertainties that are described from time to time in
B&G Foods’ filings with the Securities and Exchange Commission,
including under Item 1A, “Risk Factors” in the Company’s Annual
Report on Form 10-K for fiscal 2019 filed on February 26, 2020 and
in its subsequent reports on Forms 10-Q and 8-K. Investors are
cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. B&G
Foods undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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