Flowers enters $500 million credit facility
by Eric Schroeder
THOMASVILLE, GA. — Flowers Foods, Inc. said it has amended and restated its existing credit facility. The new credit agreement is a five-year, $500 million senior unsecured revolving loan facility with two, one-year extension options, and replaces the company’s $250 million credit facility that would have expired in October 2012. Under the new credit facility, Flowers said it may request to increase its borrowings up to an aggregate of $700 million upon the satisfaction of certain conditions.
“The new revolving credit facility substantially improves our capital structure, providing a solid debt capital base and source of liquidity as we continue to execute our new five-year growth plan,” said Steve Kinsey, executive vice-president and chief financial officer. “By 2016, our goal is for at least 75% of the nation to have access to our Nature’s Own and other fresh baked foods brands. This new credit facility enables us to take advantage of an assortment of growth opportunities as we work to achieve our goal.”
In addition to entering into the new credit facility, Flowers said it has amended its term loan agreement, originally entered on Aug. 1, 2008, to conform to the terms of the new amended and restated credit facility.