Post Holdings, Inc. Announces Powerbar Manufacturing Facility Closing
Mar 12 15
Post Holdings, Inc. announced plans to close its facility in Boise, Idaho, manufacturing PowerBar® products distributed in North America. The closure of the plant is expected to be completed by July 2015. Post management expects to transfer production of the PowerBar® products to third party facilities under co-manufacturing agreements. The decision will impact approximately 165 employees. Post has committed to providing severance and transition assistance to all affected employees. The closure is expected to improve efficiency, decrease costs and grow the profit contribution of the PowerBar® brand. Upon closure of the facility and transfer of production, Post expects to achieve net pretax annual cash manufacturing cost savings of approximately $4 million beginning in Post's fiscal year 2016. In connection with the closure, Post expects to incur one-time pretax charges of approximately $5 million, primarily in Post's second quarter of fiscal 2015.
Post Holdings, Inc. Enters into a Second Amendment to Credit Agreement
Mar 10 15
On March 6, 2015, Post Holdings, Inc. (the Borrower) entered into a Second Amendment to Credit Agreement with Wells Fargo Bank, National Association, in its capacity as Administrative Agent and acting with the consent of the Required Lenders," and the Required Lenders" and the Guarantors" party thereto, to amend its Credit Agreement dated as of January 29, 2014, and amended as of May 1, 2014, among the Company, the institutions from time to time party thereto as Lenders (the Lenders"), Barclays Bank PLC, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Bookrunners, Barclays Bank PLC, as Syndication Agent, Credit Suisse AG, Cayman Islands Branch and Goldman Sachs Bank USA, as Documentation Agents, and Wells Fargo Bank, National Association, as Administrative Agent for the Lenders (the Credit Agreement"). The Second Amendment amended the Credit Agreement to, among other matters: facilitate the financing of the Company's previously announced acquisition of MOM Brands Company (MOM Brands"), including by permitting an incremental term loan (the New Term Loan") under the Credit Agreement of up to $700 million to finance a portion of the cash portion of the purchase price of MOM Brands and waiving or limiting certain conditions for the acquisition of MOM Brands to be a permitted acquisition under the Credit Agreement; permit the Company to issue up to $450 million of unsecured notes to finance a portion of the cash portion of the purchase price of MOM Brands, the amount of which would reduce the amount of the New Term Loan; with respect to the New Term Loan, waive the condition that the Company be in pro forma compliance with the financial covenants contained in the Credit Agreement; permit future incremental loans under the Credit Agreement (in addition to the New Term Loan) in an amount not to exceed the greater of $700 million and the amount which would not cause the Company's senior secured leverage ratio to exceed 2.50 to 1.00; remove the limitation on the maximum dollar amount of dispositions of property which are permitted under the Credit Agreement; change one of the conditions for incurring additional unsecured debt under the permitted unsecured debt basket" provided in the Credit Agreement from requiring the Company to have a maximum pro forma leverage ratio of 5.75 to 1.00 to requiring the Company to have a minimum pro forma interest coverage ratio of 2.00 to 1.00; at the Company's option, permit pro forma calculations which are required under the Credit Agreement with respect to future acquisitions or investments to be performed at the time any definitive agreement with respect to any such future acquisition or investment is entered into rather than at the time consummated; and increase the amount of debt permitted in connection with an accounts receivable sale. The Credit Agreement, as amended, contains customary affirmative and negative covenants for agreements of this type, including delivery of financial and other information, compliance with laws, maintenance of property, existence, insurance and books and records, inspection rights, obligation to provide collateral and guarantees by new subsidiaries, limitations with respect to indebtedness, liens, fundamental changes, restrictive agreements, use of proceeds, amendments of organization documents, accounting changes, prepayments and amendments of indebtedness, dispositions of assets, acquisitions and other investments, transactions with affiliates, dividends and redemptions or repurchases of stock, capital expenditures, and granting liens on real property, and customary financial covenants including a maximum senior secured leverage ratio and a quarterly minimum interest coverage ratio. The Credit Agreement provides for customary events of default, including material breach of representations and warranties, failure to make required payments, failure to comply with certain agreements or covenants, failure to pay, or default under, certain other material indebtedness, certain events of bankruptcy and insolvency, inability to pay debts, the occurrence of one or more unstayed or undischarged judgments in excess of $60.0 million (increasing to $75.0 million if the MOM Brands acquisition is completed) or attachments issued against a material part of the Company's property, change in control, the invalidity of any loan document, the failure of the collateral documents to create a valid and perfected first priority lien and certain ERISA events. Upon the occurrence of an event of default, the maturity of the loans under the Credit Agreement may accelerated and the agent and lenders under the Credit Agreement may exercise other rights and remedies available at law or under the loan documents, including with respect to the collateral and guarantees for the Company's obligations under the Credit Agreement.
Post Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2014; Provides Earnings Guidance for the Fiscal 2015
Feb 5 15
Post Holdings, Inc. reported unaudited consolidated earnings results for the first quarter ended December 31, 2014. Net sales were $1,073.9 million compared to $297.0 million a year ago. Operating profit was $40.9 million compared to $25.2 million a year ago. Loss before income taxes was $73.8 million compared to $3.8 million a year ago. Net loss available to common shareholders was $101.6 million or $2.04 per diluted share compared to $5.0 million or $0.15 per diluted share a year ago. Cash provided by operating activities was $57.2 million compared to $24.9 million a year ago. Adjusted EBITDA was $127.6 million compared to $55.9 million a year ago. Adjusted net loss available to common shareholders was $57.2 million or $1.15 per diluted share compared to earnings of $0.7 million or $0.02 per diluted share a year ago. The sales and gross profit increases were driven by businesses acquired after December 31, 2013. Capital expenditures during the first quarter were $23.7 million.
The management continues to expect fiscal 2015 adjusted EBITDA to be between $540.0 million and $580.0 million, excluding any contribution from the pending acquisition of MOM Brands. The management expects progressive improvement in quarterly adjusted EBITDA throughout fiscal 2015 on a consolidated basis. The management continues to expect fiscal 2015 capital expenditures to be between $115.0 million and $125.0 million, excluding any contribution from the pending acquisition of MOM Brands. This reflects approximately $40.0 million related to growth activities, mostly at Michael Foods for projects carried over from the prior year which are expected to be completed in the first half of fiscal 2015. Maintenance capital expenditures are expected to be between $75.0 million and $85.0 million.