Flowers Foods extends $500 million revolver to 2022, reduces pricing

By Wendy Van Sickle

Columbus, Ohio, Nov. 30 – Flowers Foods, Inc. amended its credit agreement originally entered Oct. 24, 2003 on Wednesday to extend the $500 million unsecured revolving credit facility to Nov. 29, 2022, among other changes, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also reduces the leverage-based interest margin above Libor to a range of 57.5 basis points to 157.5 bps from a range of 70 bps to 175 bps.

The facility fee was cut to 5 bps to 30 bps from 5 bps to 50 bps.

Additionally, the amendment provides for “covenant holidays,” in which the maximum leverage ratio may on one or more occasion increase to 4.00 to 1.00 for a period of four consecutive fiscal quarters after certain acquisitions or investments, provided that each additional covenant holiday will not be available until Flowers has maintained a leverage ratio of at least 3.75 to 1.00 for at least two fiscal quarters.

Deutsche Bank Securities Inc. is the lead arranger and bookrunner; Branch Banking and Trust Co., Cooperatieve Rabobank UA, New York Branch, PNC Bank, NA and Regions Bank are the co-documentation agents; Bank of America, NA is the syndication agent; and Deutsche Bank AG New York Branch is the administrative agent.

Flowers Foods is a Thomasville, Ga.-based producer and marketer of packaged bakery foods for retail and foodservice customers.

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