Dean Foods tweaks loan terms, extends receivables securitization term

By Susanna Moon

Chicago, June 16 – Dean Foods Co. amended its credit agreement on Thursday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The loan terms modified by the amendment include the following:

• The maximum consolidated net leverage ratio was revised to 4 times for each fiscal quarter ending by Sept. 30 and to 3.5 times for each fiscal quarter ending after that; and

• The amount of permitted restricted payments that may be made if they would cause the company’s consolidated net leverage ratio to exceed 3.25 times was raised to $30 million from $20 million during any fiscal year.

For 2014, the company’s previously completed repurchases of its common stock of about $25 million will be excluded from the $30 million basket.

Receivables securitization

The company also amended its receivables securitization facility with Cooperatieve Centrale Raiffeisen – Boerenleenbank BA, New York Branch as agent and PNC Bank, NA as issuer of letters of credit.

The company extended the liquidity termination date to June 12, 2017 from March 6, 2015, increased the amount of letters of credit permitted under the facility to $350 million from $300 million and modified the maximum consolidated net leverage ratio to 4 times for each fiscal quarter ending on or prior to Sept. 30 and to 3.5 times for each fiscal quarter ending after that.

Dean Foods is a Dallas-based food and beverage company.

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