Clearwater Seafoods on Wednesday said it has completed a series of transactions to improve its capital structure, including about CAD 350 million (USD 335 million, EUR 257 million) in new debt facilities.
The restructuring provides financing for a CAD 45 million (USD 43 million, EUR 33 million) investment in a new vessel for clam harvesting.
The transactions announced Wednesday include the following changes to debt restructure:
• New long-term credit facilities including a CAD 75 million (USD 72 million, EUR 55 million) revolving credit facility
• A CAD 30 million (USD 29 million, EUR 22 million) term loan A facility
• A CAD 45 million delayed draw term loan A facility
• A USD 200 million (EUR 153 million) term loan B facility
BMO Capital, GE Capital Markets and Rabobank Nederland's Canadian Branch acted as Joint Lead Arrangers and Joint Bookrunners for the new credit facilities with BMO, GE Capital Canada, and Rabobank taking significant positions in the new credit facilities.
“This financing reduces our cost of capital while at the same time provides us with the opportunity to invest for future growth,” said Ian Smith, Clearwater CEO. “The investment of CAD 45 million in a third vessel for our clam fishery provides Clearwater with a meaningful means of executing on our growth plan through increasing the volumes we are able to harvest and sell to our customers.
“This refinancing and the investment in the clam vessel will enable the company to continue its strong earnings and positive cash flow momentum with a lower cost of capital and once fully operational, additional earnings from the new clam vessel.”
