Pinnacle Foods Completes Refinancing

: Chris Lee Law Firm

  Filed under: Financial News

pinnacle foodsPinnacle Foods is proud to announce that they have officially completed their refinancing plans as previously stated. By reorganizing their debt, Pinnacle Foods will benefit from lower interest rates and be able to advance its debt maturity profile. The announcement comes after the initial public offering for Pinnacle Foods was a huge financial success. Pinnacle Foods hopes that this refinancing process will strengthen their future financial portfolio and give the company an opportunity to continue market expansion.

Pinnacle Foods Reorganizes Outstanding Debt

The refinancing by Pinnacle Foods involves a $1,630 million term loan, $150 million revolving credit, and $350 aggregate principal amount. Pinnacle Foods intends to use the money garnered from the new term loan and any unsecured senior notes to repay their outstanding debt.

To complete the refinancing process, Pinnacle Foods had to pay fees to have their debt reorganized. The fees cost approximately $52 million. This included $34 million in fees early in the process associated with the redemption of interest notes. Despite the high amount of fees, Pinnacle Foods expects that the refinancing will save money in the long term and that its annualized interest expense will drastically be reduced, especially when compared to 2012.

Pinnacle Foods based their strategy on the successful initial public offering as well as the initial moves they made for refinancing last year. By completing the process, Pinnacle Foods has a clearer idea of their debt repayment process moving forward as well as the support they have with banking partners and holders in the company. The flexibility provided by the refinancing is expected to give Pinnacle Foods a cash flow boost moving forward.


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