DALLAS, March 26, 2015 /PRNewswire/ — Dean Foods Company (NYSE: DF) (“Dean Foods” or the “Company”) announced today that it has entered into a new $450 million senior secured revolving credit facility. The new credit agreement contains an accordion feature that allows the Company, subject to certain conditions, to increase the amount of the revolving facility by up to $200 million. The new credit agreement will terminate on March 26, 2020. In addition, the Company concurrently amended and restated its existing $550 million receivables securitization facility to extend the maturity through March 26, 2018, and conform the covenants to the new credit agreement.
“With the execution of the debt recapitalization, we now have an optimized $1 billion in total revolving facilities,” said Chris Bellairs, Chief Financial Officer of Dean Foods. “Over a relatively short timeframe, we have increased accessible liquidity, obtained greater covenant flexibility, lengthened the Company’s maturity profile, and reduced pricing.”
“We are very pleased with negotiated terms and conditions of these facilities,” added Gregg Tanner, Chief Executive Officer of Dean Foods. “We now have a capital structure that is more appropriate for a company of our size and industry position and that gives us the flexibility to fund our operational and strategic objectives to generate long term shareholder value.”
“We appreciate the support provided by Bank of America and Rabobank, our respective leads, and look forward to continuing our relationship with all of the institutions involved,” concluded Tanner.
The new credit agreement and amendment to the receivables securitization facility are more fully described in, and the principal agreements are attached as exhibits to, a Current Report on Form 8-K that is being filed with the Securities and Exchange Commission today.
About Dean Foods
Dean Foods® is a leading food and beverage company and the largest processor and direct-to-store distributor of fluid milk and other dairy and dairy case products in the United States. Headquartered in Dallas, Texas, the Dean Foods portfolio includes TruMoo®, the leading national flavored milk brand, along with well-known regional dairy brands such as Alta Dena®, Berkeley Farms®, Country Fresh®, Dean’s®, Garelick Farms®, LAND O LAKES® milk and cultured products*, Lehigh Valley Dairy Farms®, Mayfield®, McArthur®, Meadow Gold®, Oak Farms®, PET®**, T.G. Lee®, Tuscan® and more. In all, Dean Foods has more than 50 local and regional dairy brands and private labels. Dean Foods also makes and distributes ice cream, cultured products, juices, teas, and bottled water. Over 17,000 employees across the country work every day to make Dean Foods the most admired and trusted provider of wholesome, great-tasting dairy products at every occasion. For more information about Dean Foods and its brands, visit www.deanfoods.com.
Some of the statements in this press release are “forward-looking” and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements relating to the offering of the notes and the use of proceeds therefrom. These statements involve risks and uncertainties that may cause results to differ materially from the statements set forth in this press release, including risks and uncertainties referenced from time to time in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements in this press release speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in its expectations with regard thereto or any changes in the events, conditions or circumstances on which any such statement is based, except as required by law.
*The LAND O LAKES brand is owned by Land O’Lakes, Inc. and is used by license.
**PET is a trademark of The J.M. Smucker Company and is used by license.
CONTACT: Corporate Communications, Jamaison Schuler, +1 214-721-7766; or Investor Relations, Scott Vopni, +1-214-303-3438
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SOURCE Dean Foods Company