American Italian Pasta Company has replaced an existing US$290m senior credit facility with a $295m five-year arrangement.

As a result of the financing, the pasta producer is no longer in default of its prior credit agreement, with one day to spare, and is in compliance with all covenant requirements.

The new facility is comprised of a $265m loan and a $30m revolving credit facility. Bank of America Securities LLC, acting as sole arranger, has syndicated a portion of the facility to a group of institutional lenders.

American Italian Pasta Company CEO Jim Fogarty said: “The completion of our refinancing represents a significant milestone for the company. The new long-term financing strengthens our capital structure and provides us a stable platform from which to execute our strategies and business initiatives.”