Central Garden & Pet Company Amends and Extends Its Revolving Credit Facility
June 09 2011 - 8:00AM
Business Wire
Central Garden & Pet Company (NASDAQ:CENT) (NASDAQ:CENTA), a
leading innovator, marketer and producer of quality branded
products for the lawn and garden and pet supplies markets, today
announced the amendment of its $275 million five-year senior
secured revolving credit facility (the “Credit Facility”) effective
June 8, 2011. Under the modified terms, the Credit Facility has a
borrowing capacity of $375 million, an increase of $100 million,
and an extension of the maturity date by approximately one year to
June 2016. Further, the Credit Facility bears lower interest rates,
commitment fees and interest coverage requirements.
Interest on the amended Credit Facility is based, at the
Company's option, on a rate equal to the Alternate Base Rate (ABR),
which is the greater of: the Prime Rate, the Federal Funds rate
plus 1/2 of 1%, or one month LIBOR plus 1%, all of which have an
additional fluctuating margin of 0.75% to 1.75%. Alternatively, the
Company could choose a rate of LIBOR plus a margin, which would
fluctuate from 1.75% to 2.75%. The minimum interest coverage
requirement was reduced to 2.50 times EBITDA from 2.75 times
EBITDA.
The Company continues to have the option to increase the size of
the Credit Facility by an additional $200 million of incremental
term loans and/or revolving loans should it exercise its option and
one or more lenders are willing to make such increased amounts
available to it.
“We are pleased to have completed this favorable amendment to
our credit facility which was aided by the advantageous bank market
environment and our solid operating performance,” said Lori Varlas,
Senior Vice President and Chief Financial Officer. “The amendment
increases our financial flexibility and capacity to invest in
organic growth and strategic acquisitions, while providing for a
lower interest rate and extending the maturity date on the
revolver.”
About Central Garden & Pet
Company
Central Garden & Pet Company is a leading innovator,
marketer and producer of quality branded products for the lawn
& garden and pet supplies markets. Committed to new product
innovation, our products are sold to specialty independent and mass
retailers. Participating categories in Lawn & Garden include:
Grass seed and the brands PENNINGTON(R), SMART SEEDTM and THE
REBELS(TM); wild bird feed and the brand PENNINGTON(R); weed and
insect control and the brands AMDRO(R), SEVIN(R), IRONITE(R) and
OVER-N-OUT(R); and decorative outdoor patio products and the brands
NORCAL(R), NEW ENGLAND POTTERY(R) and MATTHEWS FOUR SEASONS(TM). We
also provide a host of other regional and application-specific
garden brands and supplies. Participating categories in Pet
include: Animal health and the brands ADAMS(TM) and ZODIAC(R);
aquatics and reptile and the brands OCEANIC(R), AQUEON(TM) and
ZILLA(TM); bird & small animal and the brands KAYTEE(R), SUPER
PET(R) and CRITTER TRAIL(R); dog & cat and the brands TFH(R),
NYLABONE(R), FOUR PAWS(R), PINNACLE(R) and AVODERM(R); and equine
and the brands FARNAM(R), BRONCO(R) and SUPER MASK(R). We also
provide a host of other application-specific Pet brands and
supplies. Central Garden & Pet Company is based in Walnut
Creek, California, and has approximately 4,300 employees, primarily
in North America and Europe. For additional information on Central
Garden & Pet Company, including access to the Company's SEC
filings, please visit the Company's website at www.central.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release which
are not historical facts are forward-looking statements that are
subject to risks and uncertainties that could cause actual results
to differ materially from those set forth in or implied by
forward-looking statements. These risks are described in the
Central's Annual Report on Form 10-K, filed November 19, 2010, and
Central's Quarterly Report on Form 10-Q, filed May 5, 2011, and
other Securities and Exchange Commission filings. Central
undertakes no obligation to publicly update these forward-looking
statements to reflect new information, subsequent events or
otherwise.
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