Big Heart Pet Brands enters into new $225 million asset-based revolver

By Jennifer Chiou

New York, March 7 - Big Heart Pet Brands, Inc., along with parent Blue Acquisition Group, Inc. and subsidiary Natural Balance Pet Foods, Inc., entered into a new $225 million senior secured asset-based revolving facility with a five-year term, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA acted as administrative agent.

The filing said that the borrowing base at any time will be equal to (a) 85% of eligible accounts receivable and (b) 85% of the net orderly liquidation value percentage of eligible inventory of the borrowers under the facility at that time, less customary reserves.

The commitments under the facility may be increased to up to $325 million.

Borrowings bear interest at Libor plus 125 bps to 175 bps. The initial rate is Libor plus 150 bps.

There is a commitment fee at a rate of 0.25% per year.

The company is a San Francisco-based producer, distributor and marketer of pet products and food products.

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