Enterprising Investor
4 weeks ago
Lamb Weston Shares Rise 8.6% on WSJ Report of Activist Jana Partner's Stake, Plans (10/18/24)
By Denny Jacob
Lamb Weston shares rose 8.6% following a report by The Wall Street Journal that activist investor Jana Partners has built a stake in the company and plans to push it to explore a sale.
Shares were trading around $77.10. The stock is down 34% on the year so far.
The Journal reported that Jana has built a roughly 5% position in the struggling french-fry maker, citing people familiar with the matter. The activist wants the company to improve its operations and capital allocation strategy, said the Journal. Jana could nominate directors to the board and is working with industry executives including Lamb Weston's former executive chairman, Timothy McLevish, according to the report.
Jana believes that Lamb Weston, which has attracted suitors over the years, could be a takeover target for larger food companies, according to the report.
https://www.marketwatch.com/amp/story/lamb-weston-shares-rise-8-6-on-wsj-report-of-activist-jana-partner-s-stake-plans-5f09c3cd
mdanese114
3 years ago
On Aug. 11, the company amended both of its credit agreements. The amendment to the revolver increased its size, to $1 billion from $750 million, extended its maturity and made various changes to the negative covenants. The amendment to the term loan contained conforming changes to the negative covenants in the revolver. Although the revolver and term loan are governed by separate credit agreements, they contain largely identical covenants, including the financial covenants. Read the full analysis here: https://reorg.com/lamb-weston-debt/