Illinois-based food group TreeHouse Foods has announced that it has completed a US$100m private placement debt issuance.
Go deeper with GlobalData
The senior unsecured notes have a seven-year bullet maturity and a fixed coupon rate of 6.03%. The company plans to use the proceeds of the placement to refinance existing debt and for general corporate purposes.
The placement follows a previous announcement by Treehouse that it had amended its five-year revolving line of credit, increasing its capacity by $100m to $500m, lowering the associated interest rates and fees, and extending the termination date of the agreement to 31 August, 2011.
The company said that the combination of increased capacity under the revolving credit agreement and issuance of the senior unsecured notes increases the company’s debt capacity by $200m.
“We are very pleased that both the private placement and the amended credit agreement were oversubscribed, which shows the confidence our lenders have in our business model,” said Treehouse CEO and chairman Sam K. Reed. “We not only increased the amount of capital we have access to, but we also reduced our costs of borrowing. The increase in available financial capacity facilitates our strategy of fuelling growth through strategic acquisitions.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
