FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Rabobank Agents $65MM Credit Facility for Dean Foods

July 01, 2019, 08:35 AM

Dean Foods Company announced it has successfully increased the Company's borrowing base availability to $265 million under its senior secured revolving credit facility by completing post-closing appraisal work.

Coöperatieve Rabobank U.A., New York Branch, as administrative agent, and the lenders party thereto, pursuant to which the lenders party thereto have provided the Company with a senior secured borrowing base revolving credit facility with a maximum facility amount of $265 million (the “Credit Facility”).

Under the Credit Agreement, the Company’s borrowing base was limited to (i) at any time prior to the completion of certain conditions relating to the granting of a security interest in certain of the Company’s equipment and real property and the Company’s election to include such equipment and real property in the borrowing base, $175 million and (ii) thereafter, 65% of the appraised value of the real property and equipment included in the borrowing base at such time.

Chief Executive Officer Ralph Scozzafava said, "During the first quarter, we stated that we expected to expand our revolving credit facility to $265 million by the end of the second quarter and today marks the achievement of that goal.  This increases our financial flexibility and further enhances our liquidity. In addition, our existing $450 million accounts receivable securitization facility provides us with another source of flexible, low-cost access to capital. Together, these facilities give us confidence that we currently have ample resources to execute our enterprise-wide cost productivity plan and accelerate our business transformation."

On June 28, 2019, the Company and the subsidiary guarantors completed the mortgage and appraisal work required under the Credit Agreement for a substantial portion of the covered real property and equipment. The Company entered into a First Amendment to the Credit Agreement (the “Amendment”) with the Administrative Agent and the lenders party thereto to, among other things, permit the Company’s borrowing base to equal 65% of the appraised value of the real property and equipment included in the appraisal report delivered to the Administrative Agent (up to $265 million).

On June 28, 2019, the Company elected to include real estate and equipment located at 16 of its facilities having an appraised value in excess of $450 million in the borrowing base.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.