LUNENBURG, NS – High Liner Foods Incorporated (TSX: HLF) (“High Liner Foods” or “the Company”), a leading North American value-added frozen seafood company, today announced it has successfully completed a repricing of its senior secured term loan (the “Term Loan B”). All figures are in U.S. dollars (“USD”) unless otherwise noted.
The $265 million Term Loan B was repriced to bear interest at LIBOR plus 3.75% with a LIBOR floor of 0.75%, which represents a 75 basis point reduction compared to the prior interest rate of LIBOR plus 4.25% with a LIBOR floor of 1.00%. All other material terms of the Term Loan B remain unchanged, including the maturity date of October 15, 2026.
“The Company expects to save approximately $2.0 million of annual cash interest expense with this repricing at current borrowings and LIBOR rates,” said Paul Jewer, Executive Vice President and Chief Financial Officer of High Liner Foods. “Improving upon our strong balance sheet and reducing our cost of capital remains a priority as we execute on our strategy to invest in our business and build upon our leadership in branded value-added seafood in North America.”
RBC Capital Markets acted as Lead Arranger and Bookrunner for the debt repricing.
About High Liner Foods Incorporated
High Liner Foods Incorporated is a leading North American processor and marketer of value-added frozen seafood. High Liner Foods’ retail branded products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Catch of the Day labels, and are available in most grocery and club stores. The Company also sells branded products to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and FPI labels and is a major supplier of private label value-added seafood products to North American food retailers and foodservice distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbol HLF on the Toronto Stock Exchange.
For further information about the Company, please visit our website at www.highlinerfoods.com or send an e-mail to investor@highlinerfoods.com.
This document contains forward-looking statements. Forward-looking statements can generally be identified by use of the conditional tense, the words “expect”, “plan” or “continue” or the negative of these terms or variations of them or words and expressions of a similar nature. Specific forward-looking statements in this document include, but are not limited to, expectations with respect to: continued progress on the Company’s strategic plan, including improving EBITDA, growing margins, lowering debt and strengthening its financial position; sufficient capacity and flexibility to support the Company’s EBITDA growth plans including for operational matters, capital expenditures, distributions, acquisitions and permitted investments, including any payment of same, and including whether or not investments will be made; and the Company’s ability to increase shareholder value over the long-term. These statements are based on a number of factors and assumptions including, but not limited to: the LIBOR interest rate and prime lending interest rates in Canada and the United States; the Company’s ability to complete a successful execution of its strategic plan; decisions of management and directors of the Company regarding capital expenditures, distributions and repurchases; opportunity and availability to make permitted investments under the debt facilities; and the amount and timing of the capital expenditures in excess of normal requirements to allow for facility production improvements by the Company. The statements are not a guarantee of future performance or events. By their nature, forward-looking statements involve uncertainties and risks that the forecasts and targets will not be achieved. Readers are cautioned not to place undue reliance on forward-looking statements as actual results may differ materially from those expressed in such forward-looking statements. We include in publicly available documents filed from time to time with securities commissions and The Toronto Stock Exchange, including the Company’s MD&A, a discussion of the risk factors that can cause anticipated outcomes to differ from actual outcomes. Except as required under applicable securities legislation, we do not undertake to update forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, whether as a result of new information, future events or otherwise.
