$240 million
Term Loan B refinanced at SOFR plus 3.25% with maturity extended
from October 2026 to July 2031.
LUNENBURG, NS, July 31,
2024 /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 refinancing of its senior secured term
loan (the "Term Loan B"). Proceeds from the refinancing, along with
cash on hand, were used to repay the Company's existing term debt
and pay related fees and expenses. All figures are in U.S. dollars
("USD") unless otherwise noted.
The $240 million Term Loan B was refinanced to bear
interest at SOFR plus 3.25% with a SOFR floor of 0.50%, which
represents a 60-basis point reduction, replacing the prior interest
rate of SOFR plus 3.75% and the 0.10% credit spread adjustment with
a SOFR floor of 0.75%. The maturity was also extended from
October 2026 to July 2031. The Company anticipates saving
approximately $1.4 million in annual
cash interest expense based on current borrowings and SOFR
rates.
"With the favorable reduction in pricing and the extended
maturity period, this improved arrangement gives the Company
increased financial flexibility to capitalize on future growth
opportunities and invest in key initiatives that will drive
long-term success, reinforcing the Company's position as a branded
value-added seafood leader in North
America," stated Paul Jewer,
President & CEO of High Liner Foods.
BMO Capital Markets acted as Left Lead Arranger for the
financing. RBC Capital Markets, JP Morgan Chase Bank, N.A., CIBC
World Markets Corp., and Coöperatieve Rabobank U.A., New York Branch acted as Joint Lead Arrangers
and Joint Bookrunners for the debt repricing. The Bank of
Montreal also assumed the role as
Administrative Agent on the Term Loan B.
Forward Looking Information
This press release contains forward-looking information within
the meaning of applicable securities laws with respect to the
Company, including, but not limited to, statements concerning the
Company's Term Loan B refinancing, anticipated cost savings
associated with such refinancing, potential investments by the
Company and expected benefits therefrom, and the business
strategies, operational activities and future growth and prospects
of High Liner Foods. Forward-looking statements are based on
information currently available to the Company and management's
estimates, expectations and assumptions, which we believe are
reasonable as of the current date but may prove to be incorrect.
These statements are also subject to risks and uncertainties.
Actual results or events may differ materially from those expressed
or implied by such forward-looking statements. Additional
information about these assumptions, risks and uncertainties is
included in the Company's securities regulatory filings, including
under the headings "Risk Factors" and "Forward-Looking Information"
in the Company's annual Management's Discussion & Analysis,
which can be found under the Company's profile on SEDAR+ at
www.sedarplus.ca. Undue reliance should not be placed on this
forward-looking information, which applies only as of the date
hereof, and the Company does not undertake to update or revise any
forward-looking information, whether as a result of any new
information, future events or otherwise, except as may be required
by applicable law.
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, Canada and Mexico under the High
Liner, Fisher Boy, Mirabel and Sea Cuisine
labels, and are available in most grocery and club stores. The
Company also sells branded products to restaurants and institutions
under the High Liner, Icelandic
Seafood and FPI labels and is the 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.
SOURCE High Liner Foods Incorporated