Bob Evans Farms Completes Amendment to Credit Facility
October 21 2015 - 4:01PM
Bob Evans Farms, Inc. (NASDAQ:BOBE) today announced that it amended
its existing credit facility.
Chief Administrative Officer and Chief Financial Officer Mark
Hood said, "We are pleased to have completed this amendment to our
credit facility as it enables Bob Evans Farms to effectively and
efficiently lengthen the tenor of its capital structure by
introducing long-term leases for a portion of our asset base.
This completes an important step as we move forward with plans to
monetize approximately $200 million of restaurant properties
through a sale-leaseback transaction(s). Along with
monetization of two of the Company’s industrial properties and its
headquarters, the amended facility provides Bob Evans with the
flexibility to continue returning capital to shareholders while
managing leverage prudently as we continue our restructuring and
turnaround activities and positioning the Company for sustainable
profitable growth."
The credit agreement has been amended to:
- increase the level of permitted indebtedness in connection with
sale and leaseback transactions of assets from $100 million to $300
million;
- remove the $150 million share repurchase cap during the 2016
fiscal year, however, share repurchases remain subject to a
leverage ratio restriction; and
- decrease the size of the facility from $750 million to $650
million, which will result in lowering the Company’s unused
facility fee costs. The decrease will also result in a $0.02
per diluted share charge to write-off deferred financing
costs.
The credit facility’s $300 million accordion feature remains in
place.
Information concerning the amendment was filed by the Company
today with the Securities and Exchange Commission (“SEC”) and can
be obtained from the SEC’s Edgar database at www.sec.gov.
PNC Bank, National Association, and PNC Capital Markets LLC,
acted as administrative agent, and joint lead arranger and sole
bookrunner, respectively for the facility. J.P. Morgan Securities
LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and
Wells Fargo Bank, National Association acted as joint lead
arrangers. Co-syndicated agents included Bank of America N.A.,
JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National
Association. The other lenders are KeyBank, National Association,
Bank of America N.A., Fifth Third Bank, U.S. Bank National
Association, The Huntington National Bank, and The Ohio Valley Bank
Company.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
Certain statements in this news release that are not historical
facts are forward-looking statements. Forward-looking statements
involve various important assumptions, risks and uncertainties.
Actual results may differ materially from those predicted by the
forward-looking statements because of various factors and possible
events. We discuss these factors and events, along with certain
other risks, uncertainties and assumptions, under the heading “Risk
Factors” in Item 1A of our Annual Report on Form 10-K for the
fiscal year ended April 24, 2015, and in our other filings with the
Securities and Exchange Commission. We note these factors for
investors as contemplated by the Private Securities Litigation
Reform Act of 1995. Predicting or identifying all such risk factors
is impossible. Consequently, investors should not consider any such
list to be a complete set of all potential risks and uncertainties.
Any strategic transaction with respect to our headquarters,
our BEF Foods Facilities or a portion of our restaurant real estate
remains subject to evaluation by the Board and there can be no
assurance if and when any such transaction will be undertaken or
consummated. Forward-looking statements speak only as of the
date on which they are made, and we undertake no obligation to
update any forward-looking statement to reflect circumstances or
events that occur after the date of the statement to reflect
unanticipated events. All subsequent written and oral
forward-looking statements attributable to us or any person acting
on behalf of the Company are qualified by the cautionary statements
in this section.
About Bob Evans Farms, Inc.
Bob Evans Farms, Inc. owns and operates full-service restaurants
under the Bob Evans Restaurants brand name. At the end of the
first fiscal quarter (July 24, 2015), Bob Evans Restaurants owned
and operated 549 family restaurants in 19 states, primarily in the
Midwest, mid-Atlantic and Southeast regions of the United States.
Bob Evans Farms, Inc., through its BEF Foods segment, is also a
leading producer and distributor of refrigerated side dishes, pork
sausage and a variety of refrigerated and frozen convenience food
items under the Bob Evans and Owens brand names. For more
information about Bob Evans Farms, Inc.,
visit www.bobevans.com
BOBE-G
Contact:
Scott C. Taggart
Vice President, Investor Relations
(614) 492-4954
Bob Evans Farms (NASDAQ:BOBE)
Historical Stock Chart
From Jul 2024 to Aug 2024
Bob Evans Farms (NASDAQ:BOBE)
Historical Stock Chart
From Aug 2023 to Aug 2024