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KeyBank, Jefferies Finance Provide $425MM in Credit Facilities to PetIQ

April 20, 2021, 08:00 AM
Filed Under: Consumer Products

PetIQ entered into a new $300 million term loan and a $125 million new asset-based revolving line of credit.

The credit facility replaces both the existing term loan and ABL facilities and increases borrowing capacity by approximately $109 million. The Term Loan B, priced at L+425 with a 0.50% LIBOR floor, has a maturity of April 2028 and contains no financial covenants. The new ABL, priced at L+125 to L+175, has a maturity of April 2026. The credit facilities provide significant improvements in debt covenants, increased operational flexibility and incremental debt baskets to facilitate future growth. In addition to replacing previous facilities, a portion of the proceeds were used to fully repay $27.5 million of the unsecured VIP Seller Notes bearing interest at 6.75%.

John Newland, PetIQ’s Chief Financial Officer, commented, “We are pleased to have partnered with both Jefferies Finance LLC and Key Bank National Association on these new credit facilities which offer more favorable terms, a 125-basis point decrease in our annual interest rate on our term loan and greater financial flexibility to support our future growth.”

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