Flowers loan covenants amended for more borrowing flexibility

by Josh Sosland
Share This:
Search for similar articles by keyword: [Flowers Foods]

Flowers Foods products
$500 million credit arrangement extended until November 2022.
 

THOMASVILLE, GA. — Flowers Foods, Inc. will be allowed to increase its maximum leverage ratio to 4:1 (debt to EBITDA) for up to four consecutive quarters following a quarter in which an acquisition has been completed, under a new arrangement with its lender. Amendments in a credit agreement between Flowers and Deutsche Bank AG were disclosed Nov. 29 in an 8-K filing with the Securities and Exchange Commission.

The amendment was the sixth since Flowers and Deutsche Bank signed a credit agreement in 2003. The latest amendment extends maturity of the credit agreement until Nov. 29, 2022. The principal amount of the senior unsecured revolving facility remains unchanged at $500 million. In the amendment, the applicable facility fee was lowered to 0.05% to 0.3% (from 0.05% to 0.5%) due on commitments under the agreement.

The 4:1 leverage increase is conditioned on Flowers having maintained a ratio of no more than 3.75:1 for the two quarters prior to the action raising the company’s debt. In the 12 weeks ended Oct. 7, adjusted EBITDA at Flowers was $112,356,000 (which annualizes to about $450 million), and the company’s aggregate debt was $1,197 million.

 

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

 

 


The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.