Cott amends credit facility, reducing revolver to $225 million

By Angela McDaniels

Tacoma, Wash., July 22 - Cott Corp. said it amended its credit agreement on Wednesday, reducing the revolving credit facility to $225 million from $250 million and increasing the interest rate to Libor plus 325 to 375 basis points, depending on availability.

Cott Beverages Inc. and Cott Beverages Ltd. are additional borrowers under the facility, according to an 8-K filing with the Securities and Exchange Commission.

The amendments also give the company greater flexibility to purchase or redeem its 8% senior subordinated notes due 2011 and to raise debt or equity to fund such purchases and redemptions.

The purchase or redemption of the notes and the fundraising are subject to several conditions, including significant availability requirements under the revolver, fixed-charge coverage tests and other conditions

The amendments will become effective if the company issues equity securities within 180 days generating proceeds of at least $50 million.

JPMorgan Chase Bank, NA is the administrative agent.

Cott is a Toronto-based non-alcoholic beverage company and retail brand soft drink company.

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