Penford gets $130 million amended and restated credit facility

By Sara Rosenberg

New York, July 11 - Penford Corp. closed on a $130 million amended and restated five-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

BMP Capital Markets and Rabobank acted as the joint lead arrangers and bookrunners on the deal that was completed on July 9.

Initial pricing on the revolver is Libor plus 400 basis points with a 50 bps unused fee. The spread can range from Libor plus 200 bps to 400 bps and the unused fee can range from 40 bps to 50 bps, based on leverage.

Covenants include a total leverage ratio of 3.75 times through Nov. 30, 3.50 times through Nov. 30, 2013, 3.25 times through May 31, 2014 and 3.0 times thereafter. There is also a fixed-charge coverage ratio of 1.35 times.

There is a $30 million accordion feature.

Proceeds were used to refinance an existing $60 million credit facility.

Penford is a Centennial, Colo.-based developer, manufacturer and marketer of specialty, natural-based ingredient systems for a variety of industrial and food applications.

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