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BofA Agents $1 Billion Credit Facility Refi With Dean Foods

March 27, 2015, 07:58 AM

Dean Foods Company announced it has entered into a new $450 million senior secured revolving credit facility.  The new credit agreement contains an accordion feature that allows the company, subject to certain conditions, to increase the amount of the revolving facility by up to $200 million. The new credit agreement will terminate on March 26, 2020. In addition, the Company concurrently amended and restated its existing $550 million receivables securitization facility to extend the maturity through March 26, 2018, and conform the covenants to the new credit agreement.

To view the 8K filing that names the lenders on these facilitie, click here.

"With the execution of the debt recapitalization, we now have an optimized $1 billion in total revolving facilities," said Chris Bellairs, Chief Financial Officer of Dean Foods. "Over a relatively short timeframe, we have increased accessible liquidity, obtained greater covenant flexibility, lengthened the Company's maturity profile, and reduced pricing."

"We are very pleased with negotiated terms and conditions of these facilities," added Gregg Tanner, Chief Executive Officer of Dean Foods. "We now have a capital structure that is more appropriate for a company of our size and industry position and that gives us the flexibility to fund our operational and strategic objectives to generate long term shareholder value."

"We appreciate the support provided by Bank of America and Rabobank, our respective leads, and look forward to continuing our relationship with all of the institutions involved," concluded Tanner.

Dean Foods is a leading food and beverage company and the largest processor and direct-to-store distributor of fluid milk and other dairy and dairy case products in the United States.

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