B&G Foods, Inc. (NYSE: BGS) announced today that it has
completed its previously announced tack-on offering of 8.000%
senior secured notes due 2028 and credit agreement refinancing.
Closing of Tack-on Offering of Senior Secured Notes
On July 12, 2024, B&G Foods completed its offering of an
additional $250.0 million aggregate principal amount of 8.000%
senior secured notes due 2028 in a transaction exempt from
registration under the Securities Act of 1933, as amended. The new
senior secured notes were issued at a price of 100.5% of their face
value plus accrued and unpaid interest from March 15, 2024 to, but
excluding, the closing date. The new senior secured notes
constitute an additional issuance of senior secured notes under the
indenture, dated as of September 26, 2023, governing B&G Foods’
previously issued 8.000% senior secured notes due 2028. Following
completion of the tack-on offering, approximately $799.3 million of
8.000% senior secured notes due 2028 are outstanding.
B&G Foods used the net proceeds of the new senior secured
notes offering to repay a portion of B&G Foods’ tranche B term
loans and revolving credit loans under its senior secured credit
agreement and to pay related fees and expenses.
The new senior secured notes are guaranteed on a senior secured
basis by certain domestic subsidiaries of B&G Foods (that
guarantee B&G Foods’ senior secured credit agreement, existing
senior secured notes and existing senior unsecured notes). The new
senior secured notes are secured by a first-priority security
interest in certain collateral, which generally includes most of
B&G Foods’ and the guarantors’ right or interest in or to
property of any kind, except for real property and certain
intangible assets, and which collateral also secures B&G Foods’
senior secured credit agreement and existing senior secured notes
on a pari passu basis.
The new senior secured notes and related guarantees were offered
only to persons reasonably believed to be qualified institutional
buyers in reliance on an exemption from registration pursuant to
Rule 144A under the Securities Act, and to certain non-U.S. persons
in transactions outside of the United States in reliance on
Regulation S under the Securities Act. The new senior secured notes
and the related guarantees have not been and will not be registered
under the Securities Act, any state securities laws or the
securities laws of any other jurisdiction. Accordingly, the new
senior secured notes and the related guarantees may not be offered
or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities Act
and any applicable securities laws of any state or other
jurisdiction.
Closing of Credit Agreement Refinancing
Also on July 12, 2024, B&G Foods completed the refinancing
of its senior secured credit agreement. As part of the refinancing
and together with a portion of the net proceeds of the tack-on
offering, B&G Foods reduced the aggregate principal amount of
tranche B term loans outstanding from $507.3 million to $450.0
million by replacing $507.3 million of outstanding tranche B term
loans with $450.0 million of new tranche B term loans. B&G
Foods also extended the maturity date for the tranche B term loans
from October 10, 2026 to October 10, 2029. The new tranche B term
loans were issued at a price equal to 99.0% of their face value.
The new tranche B term loans will bear interest based on
alternative rates that B&G Foods may choose, including a base
rate per annum plus an applicable margin of 2.50%, and SOFR plus an
applicable margin of 3.50%.
As part of the refinancing, B&G Foods also prepaid $175.0
million aggregate principal amount of revolving credit loans with a
portion of the proceeds of the tack-on offering, decreased the
revolver capacity under the senior secured credit agreement from
$800.0 million to $475.0 million aggregate principal amount, and
extended the maturity date of its revolving credit facility from
December 16, 2025 to December 16, 2028. Following the refinancing,
interest under the revolving credit facility, including any
outstanding letters of credit, will be determined based on
alternative rates that B&G Foods may choose in accordance with
the credit agreement, including a base rate per annum plus an
applicable margin ranging from 0.50% to 1.00%, and SOFR plus an
applicable margin ranging from 1.50% to 2.00%, in each case
depending on B&G Foods’ consolidated leverage ratio. As of July
12, 2024, $30.0 million aggregate principal amount of revolving
credit loans remain outstanding.
This press release is for informational purposes only and does
not constitute an offer to sell or a solicitation of an offer to
buy securities, including without limitation, the new senior
secured notes and the related guarantees, nor shall there be any
sale of securities, including without limitation, the new senior
secured notes and the related guarantees, in any state or
jurisdiction in which the offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About B&G Foods, Inc.
Based in Parsippany, New Jersey, B&G Foods and its
subsidiaries manufacture, sell and distribute high-quality, branded
shelf-stable and frozen foods across the United States, Canada and
Puerto Rico. With B&G Foods’ diverse portfolio of more than 50
brands you know and love, including B&G, B&M, Bear Creek,
Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur,
Mama Mary’s, Maple Grove Farms, New York Style, Ortega, Polaner,
Spice Islands and Victoria, there’s a little something for
everyone.
Forward-Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute “forward-looking statements.”
Such forward-looking statements involve known and unknown risks,
uncertainties and other unknown factors that could cause the actual
results of B&G Foods to be materially different from the
historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements that
explicitly describe such risks and uncertainties, readers are urged
to consider statements labeled with the terms “believes,” “belief,”
“expects,” “projects,” “intends,” “anticipates,” “assumes,”
“could,” “should,” “estimates,” “potential,” “seek,” “predict,”
“may,” “will” or “plans” and similar references to future periods
to be uncertain and forward-looking. Factors that may affect actual
results include, without limitation: B&G Foods’ substantial
leverage; the effects of rising costs for and/or decreases in
supply of B&G Foods’ commodities, ingredients, packaging, other
raw materials, distribution and labor; crude oil prices and their
impact on distribution, packaging and energy costs; B&G Foods’
ability to successfully implement sales price increases and cost
saving measures to offset any cost increases; intense competition,
changes in consumer preferences, demand for B&G Foods’ products
and local economic and market conditions; B&G Foods’ continued
ability to promote brand equity successfully, to anticipate and
respond to new consumer trends, to develop new products and
markets, to broaden brand portfolios in order to compete
effectively with lower priced products and in markets that are
consolidating at the retail and manufacturing levels and to improve
productivity; the ability of B&G Foods and its supply chain
partners to continue to operate manufacturing facilities,
distribution centers and other work locations without material
disruption, and to procure ingredients, packaging and other raw
materials when needed despite disruptions in the supply chain or
labor shortages; the impact pandemics or disease outbreaks, such as
the COVID-19 pandemic, may have on B&G Foods’ business,
including among other things, B&G Foods’ supply chain,
manufacturing operations or workforce and customer and consumer
demand for B&G Foods’ products; B&G Foods’ ability to
recruit and retain senior management and a highly skilled and
diverse workforce at B&G Foods’ corporate offices,
manufacturing facilities and other locations despite a very tight
labor market and changing employee expectations as to fair
compensation, an inclusive and diverse workplace, flexible working
and other matters; the risks associated with the expansion of
B&G Foods’ business; B&G Foods’ possible inability to
identify new acquisitions or to integrate recent or future
acquisitions or B&G Foods’ failure to realize anticipated
revenue enhancements, cost savings or other synergies from recent
or future acquisitions; B&G Foods’ ability to successfully
complete the integration of recent or future acquisitions into
B&G Foods’ enterprise resource planning (ERP) system; tax
reform and legislation, including the effects of the Infrastructure
Investment and Jobs Act, U.S. Tax Cuts and Jobs Act and the U.S.
CARES Act, and future tax reform or legislation; B&G Foods’
ability to access the credit markets and B&G Foods’ borrowing
costs and credit ratings, which may be influenced by credit markets
generally and the credit ratings of B&G Foods’ competitors;
unanticipated expenses, including, without limitation, litigation
or legal settlement expenses; the effects of currency movements of
the Canadian dollar and the Mexican peso as compared to the U.S.
dollar; the effects of international trade disputes, tariffs,
quotas, and other import or export restrictions on B&G Foods’
international procurement, sales and operations; future impairments
of B&G Foods’ goodwill and intangible assets; B&G Foods’
ability to protect information systems against, or effectively
respond to, a cybersecurity incident, other disruption or data
leak; B&G Foods’ ability to successfully implement B&G
Foods’ sustainability initiatives and achieve B&G Foods’
sustainability goals, and changes to environmental laws and
regulations; and other factors that affect the food industry
generally, including: recalls if products become adulterated or
misbranded, liability if product consumption causes injury,
ingredient disclosure and labeling laws and regulations and the
possibility that consumers could lose confidence in the safety and
quality of certain food products; competitors’ pricing practices
and promotional spending levels; fluctuations in the level of
B&G Foods’ customers’ inventories and credit and other business
risks related to B&G Foods’ customers operating in a
challenging economic and competitive environment; and the risks
associated with third-party suppliers and co-packers, including the
risk that any failure by one or more of B&G Foods’ third-party
suppliers or co-packers to comply with food safety or other laws
and regulations may disrupt B&G Foods’ supply of raw materials
or certain finished goods products or injure B&G Foods’
reputation. The forward-looking statements contained herein are
also subject generally to other risks and uncertainties that are
described from time to time in B&G Foods’ filings with the
Securities and Exchange Commission, including under Item 1A, “Risk
Factors” in B&G Foods’ most recent Annual Report on Form 10-K
and in its subsequent reports on Forms 10-Q and 8-K. Investors are
cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. B&G
Foods undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240712106434/en/
Investor Relations: ICR, Inc. Anna Kate Heller
bgfoodsIR@icrinc.com Media Relations: ICR, Inc. Matt Lindberg
Matthew.Lindberg@icrinc.com
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