- Term Loan B facility amended to $300 million with October 2026 maturity -
LUNENBURG, NS , Oct. 16, 2019 /CNW/ - High Liner Foods Incorporated (HLF.TO) ("High Liner Foods" or "the Company"), a leading North American value-added frozen seafood company, today announced it has concluded an early refinancing of its senior secured term loan (the "Term Loan B"), reducing the facility from $370 million to $300 million and extending the term from April 2021 to October 2026 , and also amended its asset-based revolving facility (the "ABL Facility").
Rod Hepponstall , President and CEO of High Liner Foods stated, "We are very pleased with the success of our early refinancing which is another important milestone in our turnaround plan. With improved EBITDA1 and less debt, the Company's financial position continues to strengthen. With the certainty of this longer-term financing in place, we have the confidence, capacity and flexibility we need to continue to execute on our EBITDA growth plan, including by continuing to grow margins, and increase shareholder value over the long-term."
The principal amendments to the Term Loan B are as follows (all figures are in U.S. dollars unless otherwise noted):
- Decreased the principal amount outstanding from $324 million to $300 million ;
- Extended the term on the loan from April 2021 to October 2026 ; and
- Applicable interest rates for loans under the facility increased from LIBOR plus 3.25% (with a 1.00% LIBOR floor) to LIBOR plus 4.25% (with a 1.00% LIBOR floor).
In addition, the ABL Facility was amended concurrently with the Term Loan B amendments. The principal amendments to the ABL Facility include reducing the amount of the facility from $180 million to $150 million and extending the term from April 2021 to April 2023 .
The Company plans to use cash on hand and borrowings under the ABL Facility to reduce the Term Loan B by $24 million and pay the fees and other costs associated with completing its debt refinancing.
RBC Capital Markets acted as Lead Arranger and Bookrunner for the debt amendments.
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 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.
This document contains forward-looking statements. Forward-looking statements can generally be identified by use of the conditional tense, the words "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 turnaround 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 turnaround 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.
1 Please refer to High Liner Foods' Management's Discussion and Analysis ("MD&A") for the thirteen and twenty-six weeks ended June 29, 2019 for definitions of the non-IFRS financial measures used by the Company, including "EBITDA".
SOURCE High Liner Foods Incorporated
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