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The ABL Advisor Deal Tables
SELECTED TRANSACTION DETAILS
JPMorgan Chase, Others Provide $150MM in Facilities to Landec
Wednesday, September 28, 2016
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Lenders/Participants
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JPMorgan Chase Bank [Lender]
BMO Harris Bank [Lender]
City National Bank [Lender]
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Structure
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$100MM Revolver; $50MM Term Loan
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Amount
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$150.000
Million
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Borrower(s)
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Landec Corporation
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Description
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The syndicate is being jointly led by JPMorgan Chase and BMO Harris, each committing $62.5 million, and with City National as a participant committing $25 million, for a total credit facility of $150 million, consisting of a $50 million term loan that refinanced existing debt and a $100 million revolving credit facility. The $50 million term loan has a five-year term with a ten-year amortization and no prepayment penalties. Our interest expense over the next 12 months is projected to decrease by approximately $400,000 compared to the interest expense the Company would have incurred on the previous loans that were refinanced. The interest rate is based on Landec’s leverage ratio and can range from LIBOR plus 1.25% to 2.25%. The spread at close was 1.75% for an initial interest rate of approximately 2.30%. This initial interest rate is approximately 115 basis points lower than the average interest rate the Company was paying on the refinanced debt. The $100 million revolving credit facility combined with the Company’s operating cash flow will be used primarily to fund capacity expansion of existing operations and new product development plus other innovation efforts to achieve Landec’s five-year growth plan. The funds also provide for potential merger and acquisition activity. The Company is not anticipating any near-term merger and acquisition activity, however, this credit facility provides flexibility for Landec to pursue such activity if and when the opportunity arises.
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Industry
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Food Production - Processing
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| Related Tags |
BMO Harris Bank, City National Bank, JPMorgan Chase
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ABL Advisor
Deal Tables
2024
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