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B&G Foods lifts revolving credit facility commitment to $300 million
By Susanna Moon
Chicago, July 8 - B&G Foods, Inc. said it increased the revolving credit facility commitment to $300 million from $200 million.
The company entered into an amendment to its senior secured credit agreement last Wednesday, according to an 8-K filing with the Securities and Exchange Commission.
The amendment increases the maximum permissible consolidated leverage ratio to 7 times for the fiscal quarter ending June 29 from 6 times through the fiscal quarter ending Jan. 3, 2015; 6.75 times for the fiscal quarter ending April 4, 2015 through the fiscal quarter ending Jan. 2, 2016; and 6.5 times for the fiscal quarter ending April 2, 2016 and thereafter.
B&G Foods North America, Inc., a wholly owned operating subsidiary of B&G Foods, closed on the acquisition of Robert's American Gourmet Food, LLC doing business as Pirate Brands and VMG Pirate's Booty Blocker, Inc. on July 8 from affiliates of VMG Partners and Driven Capital Management for $195 million in cash.
After the amendment and the closing of the acquisition, there is about $254.5 million of available borrowing capacity under the revolver.
In connection with the closing, OT Acquisition, LLC, a wholly owned subsidiary of B&G Foods North America, was merged with and into Robert's American Gourmet Foods, which then changed its name to Pirate Brands, LLC. VMG Pirate's Booty Blocker will be dissolved.
B&G Foods funded the acquisition and will pay related fees and expenses with the remaining proceeds of its recently completed senior notes offering and about $40 million of revolver borrowings under its senior secured credit agreement.
B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable foods.
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