GE Capital Arranges $10MM Increase for Clearwater Term Loan
Published August 9, 2012
Categories: GE Capital
Building on the successful refinancing of its debt facilities announced on June 6, 2012, Clearwater Seafoods reported that it has exercised a US$10 million accordion option under its term loan B credit facilities.
The net proceeds were used to repay balances owing on Clearwater’s asset-based revolving credit facility.
Ian Smith, Clearwater’s CEO commented, “Consistent with our goal of increasing shareholder value, the exercise of this accordion option strengthens our liquidity and overall capital structure while increasing our ability to fund growth initiatives and reduce overall leverage.”
GE Capital Markets, Inc and GE Capital Markets (Canada) Ltd. acted as lead arrangers and bookrunners for the US$10 million additional credit.
Ellis Gaston, managing director of Corporate Finance Canada at GE Capital, added “We are pleased to continue to build on our long relationship with Clearwater and contribute, using our food industry expertise and capital markets resources, to this transaction.”
Detail of the term loan B facility (including $10 million increase:
Total facility of US$134 million, repayable in 23 consecutive quarterly payments of 0.25% of the loan amount with the balance due at maturity on June 6, 2018. The facility bears interest at an annual rate of the applicable US LIBOR rate, plus 5.5%. The minimum U.S. LIBOR Rate at any time is 1.25%. The facility contains an accordion provision that, subject to satisfaction of certain conditions, allows Clearwater to expand the facility by up to US$50 million, without further approvals from existing lenders other than the lender(s) providing such additional commitments.
Clearwater is a vertically integrated seafood company and the largest holder of shellfish licenses and quotas in Canada.