High Liner Foods, a major North American producer and marketer frozen seafood products, has successfully completed a refinancing of its senior secured term loan (“Term Loan B”). Proceeds from the refinancing, along with cash on hand, were used to repay the Lunenburg, Nova Scotia, Canada-headquartered company’s existing term debt and pay related fees and expenses.
The US $240 million Term Loan B was refinanced to bear interest at the Secured Overnight Financing Rate (SOFR) plus 3.25% with a SOFR floor of 0.50%, which represents a 60-basis point reduction, replacing the prior interest rate of SOFR plus 3.75% and the 0.10% credit spread adjustment with a SOFR floor of 0.75%. The maturity was also extended from October 2026 to July 2031. High Liner Foods anticipates saving approximately US $1.4 million in annual cash interest expense based on current borrowings and SOFR rates.
“With the favorable reduction in pricing and the extended maturity period, this improved arrangement gives the company increased financial flexibility to capitalize on future growth opportunities and invest in key initiatives that will drive long-term success, reinforcing our position as a branded value-added seafood leader in North America,” stated President & CEO Paul Jewer.
