Hostess Brands, Inc. Announces Completion of Strategic Refinancing
May 22 2017 - 8:00AM
Business Wire
Hostess Brands, Inc. (NASDAQ: TWNK, TWNKW) (the “Company”)
today announced the repricing of its existing First Lien Term
Loan.
Under the transaction, the Company’s First Lien Term Loan was
repriced from LIBOR plus 3.00% to LIBOR plus 2.50%. In addition to
the 50 basis points reduction to the interest rate, the LIBOR floor
was reduced to 75 basis points from 100 basis points. No covenants
were changed and the First Lien Term Loan continues to have a
maturity date of August 3, 2022.
As a result of the repricing, the Company’s annualized interest
expense savings is approximately $5.0 million, or $0.02 of basic
and diluted earnings per share to common stockholders (after giving
effect to income taxes and non-controlling interest). For 2017,
based on the impact and timing of the repricing as well as the
Company’s current expectation of future LIBOR, the Company expects
interest expense of $39 million to $41 million, a savings of $0.01
to $0.02 per basic and diluted earnings per share.
“We are very pleased to reprice our term loan at favorable
market terms for the second time in six months,”
commented Bill Toler, President and Chief Executive Officer of
Hostess. “This latest repricing further improves our capital
structure and provides our business with additional financial
flexibility to support our continued long-term growth.”
About Hostess Brands, Inc.
The Company is one of the leading packaged food companies
focused on developing, manufacturing, marketing, selling and
distributing fresh baked sweet goods in the United States. The
brand's history dates back to 1919, when the Hostess® CupCake was
introduced to the public, followed by Twinkies® in 1930. Today, the
Company produces a variety of new and classic treats including Ding
Dongs®, Ho Hos®, Donettes®, SweetShop™ and Fruit Pies, in addition
to Twinkies® and CupCakes.
For more information about Hostess products and Hostess Brands,
please visit hostesscakes.com. Follow Hostess on Twitter:
@Hostess_Snacks; on Facebook: facebook.com/Hostess; on Instagram:
Hostess_Snacks; and on Pinterest: pinterest.com/hostesscakes.
Forward-Looking Statements
Certain statements in this press release are forward looking as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Any statements contained herein that are not statements of
historical fact (including, but not limited to, statements to the
effect that Hostess Brands, Inc. or its management
“anticipates,” “plans,” “estimates,” “expects,” “believes,” or the
negative of these terms and other similar expressions) should be
considered forward-looking statements, including, without
limitation, the expected size and timing of the offering. These
statements involve certain risks and uncertainties that may cause
actual results to differ materially from expectations as of the
date of this release. These risks and uncertainties include,
without limitation, factors set forth in the Company’s registration
statement related to the offering and from time to time in the
Company's SEC filings. The Company intends these
forward-looking statements to speak only as of the time of this
release and does not undertake to update or revise them as more
information becomes available, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170522005358/en/
Investors, please contact:ICRKatie Turner,
646-277-1228katie.turner@icrinc.comorMedia, please contact:LAK
Public Relations, Inc.Hannah Arnold,
212-329-1417harnold@lakpr.comorMarie Espinel,
212-899-4744mespinel@lakpr.com
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