Attached files
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| 8-K - BOULDER BRANDS, INC. | v164961_8k.htm |
| EX-10.1 - BOULDER BRANDS, INC. | v164961_ex10-1.htm |
Exhibit
99.1
Smart
Balance Successfully Completes Debt Refinancing
Transaction
Enhances Strategic Flexibility
Paramus, N.J. (November 4,
2009) – Smart Balance, Inc. (NasdaqGM: SMBL), through its wholly-owned
subsidiary GFA Brands, Inc., announced today the successful refinancing of its
credit facility.
The new
$100 million secured facility allows the Company greater flexibility in
strategic areas such as acquisitions and capital structure with greater
available credit and less restrictive financial covenants than its previous
facility.
“We are
pleased with the strong demonstration of support by the banking community in our
ongoing performance and strategic outlook,” said Alan Gever, Smart Balance
Executive Vice President and Chief Financial Officer. “The current
favorable environment allowed us to create a facility that enables us to
consider strategic alternatives to enhance shareholder value in the years
ahead. While the new financial covenants increase our flexibility, we
still expect to meet the previous covenants due to the strength of our expected
performance in 2009 and beyond.”
The
Company’s new credit facility is comprised of a $55 million term loan and a $45
million revolver, both of which mature in November 2013. The overall
effective interest rate on the new facility will initially be approximately
5%. The previous facility consisted of two term loans totaling $160
million and a $20 million revolver, which were scheduled to mature in
2014. As of September 30, 2009, outstanding debt under the previous
facility totaled $64.5 million. It is expected that future interest
expense for the new facility would be equivalent versus the previous
facility.
The
definitive credit agreement which includes the specific terms and
covenants governing the Company's new credit facility will be included in a
Current Report on Form 8-K to be filed by the Company with the Securities and
Exchange Commission.
The new
facility, along with approximately $10 million in cash on hand from operations,
was used to retire the previous debt outstanding and an interest rate swap, and
pay transaction-related costs. After the close of the transaction,
total debt outstanding was $60.6 million including $5.6m million in borrowings
under the revolver and an available cash balance of approximately $5
million.
BMO
Capital Markets led the refinancing transaction in a seven-bank
consortium.
Forward-looking
Statements
Statements
made in this press release that are not historical facts, including statements
about the Company’s plans, strategies, beliefs and expectations, are
forward-looking and subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements may
include use of the words “expect”, “anticipate”, “plan”, “intend”, “project”,
“may”, “believe” and similar expressions. Forward-looking statements
speak only as of the date they are made, and, except for the Company’s ongoing
obligations under the U.S. federal securities laws, the Company undertakes no
obligation to publicly update any forward-looking statement, whether to reflect
actual results of operations, changes in financial condition, changes in general
economic or business conditions, changes in estimates, expectations or
assumptions, or circumstances or events arising after the issuance of this press
release. Actual results may differ materially from such forward-looking
statements for a number of reasons, including those risks and uncertainties set
forth in the Company’s filings with the SEC and the Company’s ability
to:
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raise
prices as fast as commodity costs
increase;
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introduce
and expand distribution of new
products;
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meet
marketing and infrastructure needs;
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meet
long-term debt covenants; and
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increase
volume in case shipments in a competitive environment with rising costs
and an increasingly price sensitive
consumer.
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About Smart Balance,
Inc.
Smart
Balance, Inc. (NasdaqGM: SMBL) is committed to providing superior tasting heart
healthier alternatives in every category it enters by avoiding trans fats
naturally, balancing fats and/or reducing saturated fats, total fat and
cholesterol. The Company’s products include Smart Balance® Buttery
Spreads, Milk, Butter Blend Sticks, Sour Cream, Peanut Butter, Microwave
Popcorn, Cooking Oil, Mayonnaise, Non-Stick Cooking Spray and
Cheese. For more information about products and the Smart Balance™
Food Plan, visit http://www.smartbalance.com.
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Media
Contact:
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Investor
Contact:
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Brent
Burkhardt
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John
Mintz
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Executive
Vice President
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Vice
President Finance &
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Managing
Director
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Investor
Relations
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TBC
Public Relations
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Smart
Balance, Inc.
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bburkhardt@tbc.us
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investor@smartbalance.com
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410-986-1303
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201-568-9300
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