High Liner completes USD 70 million loan addition following Rubicon acquisition

Published on
June 8, 2017

North American seafood company High Liner Foods has concluded a USD 70 million (EUR 62.1 million) addition to its senior secured term loan, increasing the principal amount outstanding on the facility to USD 338 million (EUR 300 million).

The terms of the add-on are consistent with the existing loan, including a maturity date of April 2021.

On 30 May, High Liner completed the acquisition of Rubicon Resources LLC for USD 107 million (EUR 95 million), which was settled through 70 percent cash – borrowed on the company’s existing asset-based revolving credit facility (ABL) and 30 percent in High Liner Foods’ common shares.

The new USD 70 million loan add-on has been used to reduce the company’s ABL.

Culver City, California-based Rubicon is principally engaged in the import and distribution of frozen shrimp products in the private-label U.S. retail market. In 2016, Rubicon’s annual sales amounted to approximately USD 234 million (EUR 207.7 million) with pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) of USD 16 million (EUR 14.2 million).  

On completion of the acquisition, Keith Decker, president and CEO of High Liner Foods, said the deal supported the company’s growth strategy by expediting its diversification into aquaculture species like shrimp that are experiencing higher growth rates in North America, as well as adding immediate shareholder value through increased sales and earnings.

Contributing Editor reporting from London, UK

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