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.
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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.”
About Galaxy Foods
Galaxy Foods Company is a leading producer of health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets. The Company’s plant-based products are low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional dairy products. Galaxy products, available at health food stores and grocers, are part of the nutritional or functional food category, the fastest growing segment of the retail food market. Galaxy brand names include Veggie Milk(TM), Veggie Slices(TM), formagg®, Soyco®, Soymage®, Wholesome Valley(TM), and Lite Bakery®. For more information, please visit the Company’s web site at www.galaxyfoods.com.
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By GlobalDataAbout SouthTrust Bank
SouthTrust Corporation is a $43.3 billion regional bank holding company with headquarters in Birmingham, Ala. SouthTrust operates more than 600 banking offices in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee and Texas. The company offers a complete line of banking and other related financial services to commercial and retail customers. SouthTrust is the 22nd largest bank holding company in the United States and is the fifth largest in the Southeast. SouthTrust Corporation common stock trades on the NASDAQ Stock Market under the symbol SOTR. The company’s web site is www.southtrust.com.
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, or other factors which may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements which speak only as of the date hereof. The company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.
