Clearwater raises additional USD $10 million in Term Loan facilitiesFri, 03 Aug 2012
/NOT FOR DISTRIBUTION TO UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES/
HALIFAX, Aug. 3, 2012 /CNW/ – (TSX: CLR, CLR.DB.A):
Building on the successful refinancing of its debt facilities announced on June 6, 2012, Clearwater Seafoods Incorporated (“Clearwater”) reported today that it has exercised a USD $10 million accordion option under its Term Loan B credit facilities.
The net proceeds were used to repay balances owing on Clearwater’s Asset Based Revolving credit facility.
Ian Smith, Clearwater’s CEO commented, “Consistent with our goal of increasing shareholder value, the exercise of this accordion option strengthens our liquidity and overall capital structure while increasing our ability to fund growth initiatives and reduce overall leverage.”
GE Capital Markets, Inc and GE Capital Markets (Canada) Ltd. acted as Lead Arrangers and Bookrunners for the USD $10 million additional credit.
Ellis Gaston, Managing Director of Corporate Finance Canada at GE Capital, added “We are pleased to continue to build on our long relationship with Clearwater and contribute, using our food industry expertise and capital markets resources, to this transaction.”
DETAILS OF TERM LOAN B FACILITY (including addition of USD $10 million)
Total facility of US$134 million, repayable in twenty-three (23) consecutive quarterly payments of 0.25% of the loan amount with the balance due at maturity on June 6, 2018. The facility bears interest at an annual rate of the applicable US Libor rate, plus 5.5%. The minimum US Libor Rate at any time is 1.25%. The facility contains an accordion provision that, subject to satisfaction of certain conditions, allows Clearwater to expand the facility by up to US $50 million, without further approvals from existing lenders other than the lender(s) providing such additional commitments.
Clearwater is one of North America’s largest vertically integrated seafood companies and the largest holder of shellfish licenses and quotas in Canada. It is recognized globally for its superior quality, food safety, diversity of species and reliable worldwide delivery of premium wild, eco-certified seafood, including scallops, lobster, clams, coldwater shrimp, crab and groundfish.
Since its founding in 1976, Clearwater has invested in science, people and technological innovation as well as resource ownership and management to sustain and grow its seafood resource. This commitment has allowed it to remain a leader in the global seafood market and in sustainable seafood excellence.
SOURCE: CLEARWATER SEAFOODS INCORPORATED