LUNENBURG, NS - 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.
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