Overhill Farms Obtains New Credit Facility

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Los Angeles-based Overhill Farms Inc. said that a new $47.5 million senior secured credit facility with Guggenheim Corporate Funding LLC was funded on Wednesday.


In addition to allowing the provider of custom frozen foods to foodservice, retail and airlines to retire its existing senior and senior subordinated debt of $44.3 million (as of April 2, 2005), the new facility provides working capital for the company’s current and expected future needs as well as for general corporate purposes.


“The continued strengthening of our balance sheet and our strong cash flow generation enabled us to refinance our debt on very favorable terms for the company,” said Chief Executive James Rudis, noting that the company estimates savings in pre-tax interest and fees of approximately $1.2 million over the initial twelve months of the facility.


The credit facility has a five-year maturity, and consists of a $7.5 million revolving credit facility and two term loans in the principal amounts of $25 million and $15 million. Initial funding under the new credit facility was made in the amount of $44.5 million. No dilution to stockholders resulted from the execution of the new loan agreement, as no equity instruments such as warrants or options were issued to the new lenders, the company said.

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