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Clearwater Raises Additional $10M in Term Loan Facilities

Economics +1 more

CANADA - Building on the successful refinancing of its debt facilities announced on 6 June, 2012, Clearwater Seafoods Incorporated reported today that it has exercised a US$10 million accordion option under its Term Loan B credit facilities.

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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 $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."

Total facility of $134 million, repayable in twenty-three (23) consecutive quarterly payments of 0.25 per cent of the loan amount with the balance due at maturity on 6 June, 2018.

The facility bears interest at an annual rate of the applicable US Libor rate, plus 5.5 per cent. The minimum US Libor Rate at any time is 1.25 per cent. The facility contains an accordion provision that, subject to satisfaction of certain conditions, allows Clearwater to expand the facility by up to $50 million, without further approvals from existing lenders other than the lender(s) providing such additional commitments.

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