Boulder Brands, Inc. : Boulder Brands, Inc. Completes $330 Million Credit
Boulder, CO (July 10, 2013) - Boulder Brands, Inc. (NasdaqGM: BDBD) announced
today it closed on a new senior secured credit facility. The new $330 million
secured credit facility consists of a $250 million 7-year term loan and an $80
million 5-year revolving credit facility. The proceeds will be used to
refinance the Company's existing $280 million senior secured credit facility,
of which $242.2 million was outstanding immediately prior to the refinancing,
and for general corporate purposes. The overall effective interest rate on
the new facility is 5.25%, 225 basis points below the previous facility. This
will result in approximately $5 million in annual cash interest savings based
on debt outstanding immediately prior to the refinancing.
"We are delighted with the strong demonstration of support and the ongoing
confidence in our outlook by the banking community," stated Christine Sacco,
the Chief Financial Officer of the Company. "The favorable market environment
enabled us to lower the company's overall interest rate and secure less
restrictive covenants, which will provide more financial flexibility,"
continued Ms. Sacco.
Steve Hughes, Chairman and CEO of Boulder Brands, commented, "Today we made
three strategic announcements that represent important steps in helping us
continue to fulfill our vision of creating a high growth, high margin, health
and wellness innovation platform. First, we refinanced our credit facility at
reduced interest rates and less restrictive covenant terms, creating
flexibility for future acquisitions. In addition, we licensed Smart Balance
Milk to a strong partner, Byrne Dairy, a move that will ensure this business
becomes a positive contributor to profits in 2014. Finally, we acquired 80%
of Level Life Foods, a market-ready diabetes brand that will enable us to add
a fourth category-elastic platform and serve a need-state vertical that
targets an important consumer group. We look forward to updating shareholders
in more detail on our August 1^st earnings call."
The credit agreement, which includes the specific terms and covenants
governing the Company's credit facility, will be included in a Current Report
on Form 8-K to be filed by the Company with the Securities and Exchange
The Company indicated that Citigroup led the banking transaction in a 3-bank
About Boulder Brands, Inc.
Boulder Brands, Inc. (NasdaqGM: BDBD) is committed to providing superior
tasting, solution-driven products. The company's health and wellness platform
consists of brands that target specific consumer needs: the Glutino® and Udi's
Gluten Free® brands for gluten-free diets; the Earth Balance® brand for
plant-based diets; the Level Life(TM) brand for diabetic diets and the Smart
Balance® brand for heart healthier diets. For more information about Boulder
Brands, Inc., please visit www.boulderbrands.com.
Carole Buyers, CFA
Senior Vice President,
Investor Relations & Business Development
Boulder Brands, Inc.
Boulder Brands, Inc.
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Source: Boulder Brands, Inc. via Thomson Reuters ONE
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