Flowers Foods amends, restates existing credit facility as a five-year US$500M senior unsecured revolving loan facility; under new facility, company may request to increase borrowings to up to US$700M
May 23, 2011
– Flowers Foods, Inc. (NYSE:FLO - News) today announced it amended and restated its existing credit facility. The new credit agreement is a five-year, $500 million senior unsecured revolving loan facility with two, one-year extension options. Under the new credit facility, Flowers may request to increase its borrowings up to an aggregate of $700 million upon the satisfaction of certain conditions.
Borrowing availability under the new credit facility may be used for working capital and general corporate purposes, including capital expenditures, acquisition financing, refinancing of indebtedness, dividends, and share repurchases. The new facility replaces the company's $250 million credit facility that would have expired in October 2012.
"The new revolving credit facility substantially improves our capital structure, providing a solid debt capital base and source of liquidity as we continue to execute our new five-year growth plan," said Steve Kinsey, executive vice president and chief financial officer. "By 2016, our goal is for at least 75% of the nation to have access to our Nature's Own and other fresh baked foods brands. This new credit facility enables us to take advantage of an assortment of growth opportunities as we work to achieve our goal."
Concurrent with entering into the new credit facility, the company amended its term loan agreement, originally entered on August 1, 2008, to conform to the terms of the new amended and restated credit facility.
Headquartered in Thomasville, Ga., Flowers Foods is one of the nation's leading producers and marketers of packaged bakery foods for retail and foodservice customers. Flowers operates 39 bakeries that produce a wide range of bakery products sold through an extensive direct-store-delivery network that encompasses the Southeast, Mid-Atlantic, and Southwest as well as select markets in California and Nevada, and nationwide through other delivery systems. Among the company's top brands are Nature's Own, Whitewheat, Cobblestone Mill, Blue Bird, and Mrs. Freshley's. For more information, visit www.flowersfoods.com.