TreeHouse Foods successfully completes amendment to credit agreement
Oak Brook, Ill.-based TreeHouse Foods said it has executed an amendment and extension of its existing senior unsecured credit facility, effective Dec. 1. As amended, the senior unsecured credit facility now includes a revolving credit facility and two term loans. The amendment extended the maturities of the revolving credit facility and term loans, tightened pricing and enhanced flexibility through the following actions:
• Resizing the revolver from $900 million to $750 million (due 2023), to more closely align with the company's liquidity needs and reduce the revolver fee structure by 10 basis points, to be calculated on the undrawn amount only.
• Increasing the maximum leverage ratio in the revolver from 3.50 to 4.00.
• Consolidating three term loans totaling $1.4 billion with a 2021 maturity into a $900 million five-year Term A loan (due 2023) and a $500 million seven-year Term A loan (due 2025).
In summary, according to the company, the prior credit facility had $2.30 billion of credit maturing in 2021, while the amended credit facility has $1.65 billion of credit maturing in 2023 and $500 million of credit maturing in 2025 ($2.15 billion in total).
"We are very pleased with the continued support we have received from our bank group and we value their confidence in our business. As well, we appreciate the affirmation of our BB and Baa2 credit ratings by Standard & Poors and Moody's respectively," said Matthew J. Foulston, executive vice president and chief financial officer of TreeHouse Foods. “The amendment improves the flexibility of our capital allocation plans and supports the execution of TreeHouse 2020.”