Flowers: Announces New 300 Million USD Term Loan

Thomasville / GA. (ff) Flowers Foods Inc. announced it has entered into a senior unsecured delayed-drawn term loan facility with a commitment of up to 300 million USD to help finance the pending acquisition of certain brands and assets of Hostess Brands Inc. and pay certain acquisition-related costs and expenses. Deutsche Bank AG New York Branch and Bank of America N.A. served as agents for the syndicate of lenders that participated in the financing. Flowers Foods also announced it has amended its existing 500 million USD senior unsecured revolving loan facility and existing unsecured term loan. The amendments provide for less restrictive leverage ratios and certain more favourable covenant terms, update the base forms of the existing agreements to address changes in law, and include applicable conforming changes in light of the new term loan. «We are pleased to have financing in place for the pending acquisition of the Hostess bread assets. The regulatory review of the proposed acquisition is underway and we look forward to completing the Hostess transaction once that review is completed. The new term loan balances near-term and longer-term debt, and will allow us to delever in keeping with our long-term financial objectives», said R. Steve Kinsey, executive vice president and chief financial officer.

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