- Annual interest savings of approximately
$2 million -
LUNENBURG, NS, March 10, 2021 /CNW/ - High Liner Foods
Incorporated (TSX: HLF) ("High Liner Foods" or "the Company"),
a leading North American value-added frozen seafood company, today
announced it has successfully completed a repricing of its senior
secured term loan (the "Term Loan B"). All figures are in U.S.
dollars ("USD") unless otherwise noted.
The $265 million Term Loan B was
repriced to bear interest at LIBOR plus 3.75% with a LIBOR floor of
0.75%, which represents a 75 basis point reduction compared to the
prior interest rate of LIBOR plus 4.25% with a LIBOR floor of
1.00%. All other material terms of the Term Loan B remain
unchanged, including the maturity date of October 15, 2026.
"The Company expects to save approximately $2.0 million of annual cash interest expense with
this repricing at current borrowings and LIBOR rates," said
Paul Jewer, Executive Vice President
and Chief Financial Officer of High Liner Foods. "Improving upon
our strong balance sheet and reducing our cost of capital remains a
priority as we execute on our strategy to invest in our business
and build upon our leadership in branded value-added seafood in
North America."
RBC Capital Markets acted as Lead Arranger and Bookrunner for
the debt repricing.
About High Liner Foods Incorporated
High Liner Foods Incorporated is a leading North American
processor and marketer of value-added frozen seafood. High Liner
Foods' retail branded products are sold throughout the United States and Canada under the High Liner,
Fisher Boy, Mirabel, Sea Cuisine and
Catch of the Day labels, and are available in most
grocery and club stores. The Company also sells branded products to
restaurants and institutions under the High Liner,
Mirabel,
Icelandic Seafood and FPI labels and is
a major supplier of private label value-added seafood products to
North American food retailers and foodservice distributors. High
Liner Foods is a publicly traded Canadian company, trading under
the symbol HLF on the Toronto Stock Exchange.
For further information about the Company, please visit our
website at www.highlinerfoods.com or send an e-mail to
investor@highlinerfoods.com.
This document contains forward-looking statements.
Forward-looking statements can generally be identified by use of
the conditional tense, the words "expect", "plan" or "continue" or
the negative of these terms or variations of them or words and
expressions of a similar nature. Specific forward-looking
statements in this document include, but are not limited to,
expectations with respect to: continued progress on the Company's
strategic plan, including improving EBITDA, growing margins,
lowering debt and strengthening its financial position; sufficient
capacity and flexibility to support the Company's EBITDA growth
plans including for operational matters, capital expenditures,
distributions, acquisitions and permitted investments, including
any payment of same, and including whether or not investments will
be made; and the Company's ability to increase shareholder value
over the long-term. These statements are based on a number of
factors and assumptions including, but not limited to: the LIBOR
interest rate and prime lending interest rates in Canada and the
United States; the Company's ability to complete a
successful execution of its strategic plan; decisions of management
and directors of the Company regarding capital expenditures,
distributions and repurchases; opportunity and availability to make
permitted investments under the debt facilities; and the amount and
timing of the capital expenditures in excess of normal requirements
to allow for facility production improvements by the Company. The
statements are not a guarantee of future performance or events. By
their nature, forward-looking statements involve uncertainties and
risks that the forecasts and targets will not be achieved. Readers
are cautioned not to place undue reliance on forward-looking
statements as actual results may differ materially from those
expressed in such forward-looking statements. We include in
publicly available documents filed from time to time with
securities commissions and The Toronto Stock Exchange, including
the Company's MD&A, a discussion of the risk factors that can
cause anticipated outcomes to differ from actual outcomes. Except
as required under applicable securities legislation, we do not
undertake to update forward-looking statements, whether written or
oral, that may be made from time to time by us or on our behalf,
whether as a result of new information, future events or
otherwise.
SOURCE High Liner Foods Incorporated