Dean Foods, a leading milk and dairy products company, recently announced that it has entered into a new credit agreement worth $850 million. This move comes as the company seeks to restructure its debt and restore its financial stability.
The new credit agreement replaces the company`s existing senior secured term loan facility and revolving credit facility. It has been structured to give Dean Foods greater flexibility in managing its debt obligations and to provide it with improved access to liquidity.
Among the highlights of the credit agreement is the extension of the maturity date of the company`s senior secured term loan facility to February 2024. This provides Dean Foods with a longer runway to repay its debt, while also reducing its overall leverage ratio. Additionally, the revolving credit facility has been increased from $250 million to $400 million, providing the company with greater access to short-term funding.
The new credit agreement is seen as a significant step forward for Dean Foods, which has been struggling to cope with declining milk consumption and increasing competition from plant-based milk alternatives. The company has been undertaking a restructuring process that includes the closure of several plants and the sale of non-core assets.
In a statement, the company`s CEO, Ralph Scozzafava, expressed confidence in the new credit agreement and its ability to support the company`s turnaround efforts. He stated that “this new credit agreement provides us with greater financial flexibility and a stronger foundation for the future.”
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