Inventure Foods closes on $85 million term loan, $50 million revolver

By Tali Rackner

Norfolk, Va., Nov. 23 – Inventure Foods, Inc. entered into a $50 million senior secured revolving credit facility and an $85 million senior secured term loan facility, according to an 8-K filed Nov. 18 with the Securities and Exchange Commission.

Both facilities mature on Nov. 17, 2020.

Interest on the term loan is Libor plus 650 basis points to 700 bps.

Interest on the revolver is equal to Libor plus 150 bps to 200 bps.

The credit agreements contain financial covenants, including a minimum fixed-charge coverage ratio of 1.1 times. The term loan agreement requires the company to maintain a total leverage ratio of 5 times from March 26 through Sept. 24, 2016; 4.75 times from Sept. 25, 2016 through Dec. 31, 2016; 4.5 times from Jan. 1, 2017 through April 1, 2017; 4.25 times from April 2, 2017 through July 1, 2017; 4 times from July 2, 2017 through Sept. 30, 2017; 3.75 times from Oct. 1, 2017 through March 31, 2018; and 3.5 times from April 1, 2018 and thereafter.

Proceeds were used to fully repay the company’s existing credit facility.

Wells Fargo Bank, NA is the administrative agent, lead arranger and bookrunner on the revolver, and BSP Agency, LLC is the agent on the term loan.

The specialty food manufacturer is based in Phoenix.

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