Flowers amends, extends loan facility

by Eric Schroeder
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THOMASVILLE, GA. — Flowers Foods, Inc. has amended and extended its existing $500 million senior unsecured revolving loan facility. The amendment provides for a new five-year term and modest improvements in the company’s drawn and undrawn pricing under the credit facility.

Flowers said the amended credit facility includes a one-year maturity extension option, and allows the company to request additional commitments up to an aggregate of $700 million upon the satisfaction of certain conditions.

The company intends to use any borrowed funds for working capital and general corporate purposes, including capital expenditures, acquisition financing, refinancing of indebtedness, dividends, and share repurchases.

“Amending and extending the credit facility improves our capital structure, providing a solid debt capital base and continued source of liquidity,” said R. Steve Kinsey, executive vice-president and chief financial officer. “This amendment to our credit facility positions us to take advantage of an assortment of opportunities as we work to achieve our expansion goals.”

Flowers Foods stock traded as high as $24.03 on Nov. 19, up nearly 8% from the previous close of $22.32 and just off the 52-week high of $24.20 set July 3.

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