Clearwater Seafoods on Thursday said it has successfully completed a series of capital market transactions to improve its capital structure.
The transactions include new long-term credit facilities, including a CAD 65 million asset-based revolving credit facility, CAD 75 million term loan A facility and a USD 125 million term loan B facility, according to the Canadian company.
There was also a payout of several existing debt facilities, including the redemption of a CAD 43.4 million of 10.5 percent debentures, a USD 54.5 million of 12 percent second lien debt and CAD 74.2 million in existing senior term notes with the remaining funds.
The moves will reduce the company’s interest costs by about CAD 4.6 million annually. The company also said the loans will strengthen liquidity and provide the necessary capital structure to execute growth plans while reducing overall leverage.
“The company’s continuing strong earnings momentum as well as the CAD 453 million independent valuation of our quotas by TriNav Fisheries Consultants combined with the positive ratings issued by Moody’s and Standard and Poors all contributed to our ability to complete this transaction on such favorable terms in the United States and Canadian credit markets,” said Clearwater CEO Ian Smith.
