Simply Good Foods Company Announces Lender Commitments
● Repricing of the existing Term Loan B of $431.5 million; no change to the due date
● Reduction of the applicable margin interest rate on the term loan from 50 basis points (0.50%) to 3.25%
● Guaranteed Overnight Funding Rate (“SOFR”) floor of 0.50% from LIBOR floor of 1.00%
DENVER, Jan. 14, 2022 (GLOBE NEWSWIRE) — The Simply Good Foods Company (NASDAQ:SMPL) (“Simply Good Foods” or the “Company”), a developer, marketer and marketer of nutritional foods and snack products brand, today announced that its indirect wholly owned subsidiary, Simply Good Foods USA, Inc. and other wholly owned subsidiaries have successfully received covenants and all necessary consents from lenders for a revaluation of their existing $431.5 million outstanding term loan under the Credit Agreement, dated July 7, 2017 (the “Term Loan”) at par. The term loan maturity date of July 7, 2024 remains unchanged. Closing of the Reprice Transaction is subject to customary closing conditions and is expected to occur on or about Friday, January 21, 2022.
Pursuant to the amendment to the Credit Agreement to effect the Repricing, the Term Loan will bear interest, at the Borrowers‘ option, at either the Guaranteed Overnight Funding Rate (“SOFR”) plus (i) an adjustment for credit spread equal to 10 basis points for 1-month SOFR, 15 bps up to 3 months SOFR and 25 bps up to 6 months SOFR, with a minimum SOFR rate of 50 basis points plus (ii) an applicable margin of 3.25% or a base rate plus an applicable margin rate of 2.50%. In addition, any outstanding balance under the revolving credit portion of the Credit Agreement will bear interest at the SOFR rate plus the applicable margin specified in the Credit Agreement with no credit spread adjustment and no minimum SOFR rate. Previously, the interest payable on the term loan at the borrowers’ choice was either LIBOR plus an applicable margin of 3.75% with a minimum LIBOR of 1%, or a base rate plus an applicable margin of 2 .50%, and interest payable on the revolving credit portion of the credit agreement was payable at LIBOR plus the applicable margin specified in the credit agreement with no minimum LIBOR.
About Simply Good Foods Company
The Simply Good Foods Company (NASDAQ: SMPL), headquartered in Denver, Colorado, is a consumer-facing packaged food and beverage company that aims to lead the nutritious snacking movement with trusted brands that deliver variety of practical, innovative, tasty, better products. -snacks and meal replacements for you. The product portfolio that we develop, market and sell primarily consists of protein bars, ready-to-drink (“RTD”) shakes, sweet and savory snacks and confectionery products marketed under the Atkins®, Atkins Endulge® and Quest®. Simply Good Foods is poised to expand its wellness platform through innovation and organic growth, as well as acquisition opportunities in nutritional snacks. For more information, please see http://www.thesimplygoodfoodscompany.com.
Vice President, Investor Relations, Treasury and Business Development
Simply Good Foods Company