High Liner Foods Incorporated has announced the completion of a US$60 million addition to its senior secured Term Loan B and a five-year extension of its Asset-Based Revolving Credit Facility. The company, which specializes in value-added frozen seafood across North America, stated that these financial transactions are intended to improve liquidity and financial flexibility.
Kimberly Stephens, Executive Vice President & Chief Financial Officer, commented on the transactions: “Our ability to attract strong interest from both our existing lenders and new institutional partners speaks to the quality of our credit profile and the strength of our banking relationships. The TLB incremental was effectively oversubscribed, signalling strong confidence in High Liner’s strategy and disciplined management of liquidity.”
The additional term loan is priced under the same terms as the previous facility. Proceeds will be used to repay borrowings related to High Liner’s acquisition of Mrs. Paul’s and Van de Kamp’s U.S. retail brands, as well as to support higher working capital needs. After this transaction, the company’s total outstanding term debt stands at US$292.5 million.
The amendment and extension to the asset-based lending facility will extend its maturity by five years while maintaining current pricing levels. The lender group for this facility remains mostly unchanged with minor allocation adjustments, and overall commitment stays at US$200 million.
Bank of Montreal serves as administrative agent for the term loan increment, with BMO Capital Markets Corp., RBC Capital Markets, JPMorgan Chase Bank, N.A., CIBC World Markets Corp., and Coöperatieve Rabobank U.A., New York Branch acting as joint lead arrangers and bookrunners. For the revolving credit facility extension, Royal Bank of Canada is administrative agent; RBC Capital Markets, JPMorgan Chase Bank (Toronto Branch), and Bank of Montreal acted as joint lead arrangers and bookrunners.
High Liner Foods’ branded products are sold throughout grocery stores in Canada and the United States under several labels including High Liner, Fisher Boy, Mirabel, Sea Cuisine, Catch of the Day, Mrs. Paul’s, and Van de Kamp’s. The company also supplies restaurants and institutions under other brands such as Icelandic Seafood and FPI.
The company cautioned that forward-looking statements regarding these transactions involve risks that could cause actual results or events to differ materially from expectations.