Contract frozen food processorOverhill Farms, Inc ., Vernon, Calif., said it executed a $30 million three-year senior secured revolving credit facility withBank of America, N.A.
"This transaction is a significant positive event for the company," said James Rudis, chairman and chief executive officer. "Reflecting our strong financial position, the new agreement includes improved financial terms, as well as provisions which will allow the company to consider a broad range of opportunities to improve shareholder's value."
Rudis said the new facility allows the company to pursue acquisitions and other transactions, such as stock buybacks or dividends, without further lender approval. Additionally, Overhill said it will have the ability to increase the aggregate amount of the financing by $20 million under certain conditions.
"We look forward to our new relationship with Bank of America, and at the same time we thank our previous lender, Guggenheim Capital Partners, LLC, for a very positive relationship over the last four and a half years," Rudis added.
Overhill Farms processes and packages frozen entrees, plated meals, bulk-packed meal components, pastas, soups,
sauces, poultry, meat and fish specialties, as well as organic and
vegetarian offerings. Its customers include branded retail, private label, foodservice and airline operators.
Frozen contract packer Overhill Farms secures financing
September 30, 2010