Dean Foods details new five-year revolver priced at Libor plus 250 bps

By Marisa Wong

Madison, Wis., March 27 – Dean Foods Co. disclosed more details on its new $450 million senior secured revolving credit facility in an 8-K filed Friday with the Securities and Exchange Commission.

The company entered into the five-year revolver on Thursday with Bank of America, NA as administrative agent and JPMorgan Chase Bank, NA, Morgan Stanley Senior Funding, Inc., CoBank, ACB, SunTrust Robinson Humphrey, Inc., Rabobank Nederland, New York Branch, Credit Agricole CIB and PNC Bank, NA as joint lead arrangers.

The new credit agreement contains an accordion feature allowing the company to increase the amount of the revolver by up to $200 million.

The credit facility is available for the issuance of up to $75 million of letters of credit and up to $100 million of swingline loans. Proceeds may be used for general corporate purposes.

The revolver will terminate on March 26, 2020.

Interest is equal to Libor plus 225 basis points to 275 bps, depending on the company’s total net leverage ratio. The margin is initially 250 bps.

The company concurrently terminated its credit agreement dated July 2, 2013, replacing it with the new facility, the filing noted.

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

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