USA: Galaxy Foods Company Secures $8.5 Million Credit Facility With SouthTrust Bank
Galaxy Foods Company (AMEX: GXY), a leading producer of nutritional, health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets, today announced that it has entered into an $8.5 million credit facility floating at prime interest rate with SouthTrust Bank (NASDAQ: SOTR). Under the terms of the agreement, Galaxy Foods is refinancing existing equipment debt of $2.5 million at a lower cost of capital, and acquiring an additional $6.0 million of new equipment. This note has a ten-year term, and a five-year amortization with interest only due in the first year. Once in place, the new equipment is expected to more than double the current plant capacity in all product lines. Keith A. Ewing, Chief Financial Officer of Galaxy Foods, stated, "Increased production capacity created by this credit facility will allow us to meet strong current and future consumer demand for our products. Also, as production increases, the Company will generate cost savings from purchasing, distribution and operating efficiencies. We are focused on growing our business, and our new equipment facility with SouthTrust Bank provides us with the tools to support that growth." Todd Banes, Vice President of SouthTrust Bank stated, "Galaxy Foods has become a leader in the healthy foods sector by being innovative, dynamic and focused - the same characteristics which SouthTrust Bank exhibits every day with its customers. We are delighted to partner with the Company and finance their growth today and into the future."
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