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Wintrust Financial Provides $12MM Credit Facility to Better Choice

January 12, 2021, 07:00 AM
Filed Under: Specialty Industries

Better Choice Company secured a new $12.0 million long-term credit facility at LIBOR plus 250 basis point interest rate with Wintrust Financial Corporation. Under the terms of this new agreement, Better Choice will simultaneously refinance all existing indebtedness with Citizens Bank and Bridging Finance, which currently totals approximately $13.3 million. In aggregate, this will reduce annual cash interest payments to approximately $300 thousand per year, representing an annual savings of more than $2.0 million relative to 2020, and a blended rate reduction of more than 5%.

Scott Lerner, Chief Executive Officer of Better Choice, commented, “I couldn’t be more excited than to partner with Wintrust on this next phase of growth for the company. This new credit relationship gives us the ability to execute our financial plan and seek out new revenue streams in the future.”

Michael Young, Chairman of Better Choice, commented, “We are extremely proud that recent performance has enabled our team to achieve a major breakthrough in our credit status with lenders. This new agreement meaningfully lowers our annual interest expense and represents another major milestone for Better Choice. Not only were we able to extend and consolidate our credit facility maturities, but we did so while dramatically reducing interest expense, enabling us to reinvest incremental proceeds into the business and fund growth. As we have continually updated the market over the last few months, Better Choice Company is benefiting from increasing economies of scale, which we anticipate will continue to drive margin expansion and growth. We believe we are well positioned to prosper from the explosive growth in the animal health and wellness industry.”

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