HANOVER, PA – (COMMERCIAL THREAD) – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), today announced the closing of its term loan refinancing. Originally envisioned as an addition of $ 310 million to the existing B-term loan maturing in 2024, following strong investor demand, Utz placed a new $ 720 million B-term loan maturing in 2028 (the “New Loan term ”), allowing the Company to extend its term. profile and reset certain terms of his credit agreement. The new term loan, along with approximately $ 181 million in cash proceeds received from the redemption of all outstanding public warrants and term warrants, fully repaid the bridge credit facility of $ 490 million used to finance the acquisition of Truco Enterprises and On The Border® brand, as well as refinanced the pre-existing $ 410 million B-term loan due in 2024.
The New Term Loan was launched at LIBOR + 350 bps / 0.00% Floor / 99.25 – 99.50 OID, but with the order book several times oversubscribed, pricing was finalized at LIBOR + 300 bps / 0.00% Floor / 99.75 OID.
“This refinancing reduces our expected cash interest costs by $ 3.6 million per year, extends the company’s maturity profile by three years, and provides our business with additional financial flexibility to support our continued growth over the long term.” term, ”said Cary Devore, Executive Vice President and Chief Executive Officer. Financial director. “We are very pleased with this result and are grateful for the continued support of our banking partners and debt holders. We have also welcomed a significant number of new holders of high quality debt securities to the Company. ”
As part of the refinancing, in December 2020, Utz also increased the size of its ABL revolving credit facility due 2024 from $ 116 million to $ 161 million.
Bank of America, Goldman Sachs and Credit Suisse acted as Joint Bookrunners and Joint Lead Arrangers on the new term loan. Bank of America is the administrative agent. Additional details on the new term loan can be found in Form 8-K to be filed with the Securities and Exchange Commission.
About Utz Brands, Inc.
Utz manufactures a diverse portfolio of savory snacks under popular brands such as Utz®, On The Border®, Zapp’s®, Golden Flake®, Good Health®, Boulder Canyon®, Hawaiian® Brand and Tortiyahs! ® among others.
After nearly a century with a strong family heritage, Utz continues to have a passion for exciting and thrilled consumers with delicious snacks made with premium ingredients. Utz’s products are distributed nationally and internationally through grocery stores, department stores, clubs, convenience stores, drugs and other channels. Based in Hanover, Pennsylvania, Utz operates fourteen facilities located in Pennsylvania, Alabama, Arizona, Illinois, Indiana, Louisiana, Washington and Massachusetts. For more information, please visit www.utzsnacks.com or call 1-800-FOR-SNAX.