Seneca Foods gets replacement facility, adds $175 million term loan

By Mary-Katherine Stinson

Lexington, Ky., Jan. 26 – Seneca Foods Corp., Seneca Foods, LLC, Seneca Snack Co. and Green Valley Foods, LLC entered a second amended and restated loan and guaranty agreement on Jan. 20 with Farm Credit East, ACA, according to an 8-K filing with the Securities and Exchange Commission.

The agreement amends, restates and entirely replaces the company’s previous agreement dated as of May 28, 2020.

The new agreement continues the term loan A-1 from the previous facility and adds an additional $175 million term loan A-2 which matures Jan. 20, 2028.

Certain aspects of the original $100 million term loan A-1 remain unchanged, namely the loan’s fixed interest rate of 3.3012% and its maturity date of June 1, 2025. As of Jan. 25, the outstanding balance of the term loan A-1 was $90 million.

Borrowings under the new term loan A-2 will bear interest at SOFR plus an additional margin based on the company’s leverage ratio. The three tiers for the margin are 175 bps, 200 bps and 225 bps.

The loan agreement contains customary restrictive covenants and requires the company to satisfy certain financial covenants including minimum EBITDA and minimum tangible net worth which apply to both term loans.

Proceeds of the term loan A-2 will be used working capital and general company purposes, including the repayment of outstanding loans under the company’s revolving credit facility.

The term loan A-2 is secured by a portion of the company’s property, plant and equipment. The loan agreement is jointly and severally guaranteed by all existing and future domestic subsidiaries of the company subject to certain exceptions.

Seneca is a Fairport, N.Y.-based food processor and distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.