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Cott enters five-year, up to $500 million asset-based lending facility
By Wendy Van Sickle
Columbus, Ohio, Aug. 4 – Cott Corp. entered into an agreement Tuesday making effective a five-year up to $500 million amended and restated senior secured asset-based lending credit facility, according to an 8-K filing with the Securities and Exchange Commission.
The ABL facility amended and restated the company’s credit agreement dated Aug. 1, 2010.
Availability depends on a borrowing base calculated as a percentage of the value of eligible inventory, accounts receivable and property, plant and equipment.
Borrowings will bear interest at Libor plus a spread of 125 basis points to 175 bps.
JPMorgan Chase Bank, NA serves as administrative agent.
The ABL facility has subfacilities for letters of credit and swingline loans and sublimits of $100 million total to the company’s subsidiaries in the United Kingdom and the Netherlands and $40 million to its subsidiary in Canada.
Subject to certain conditions, the facility may be increased up to an additional $100 million.
The debt under the ABL facility is guaranteed by most of the company’s U.S., Canadian, U.K. and Luxembourg subsidiaries and certain of the company’s Dutch subsidiaries.
Entry into the agreement came in connection with the company’s entry into an agreement to acquire all of the outstanding stock of S&D Coffee Holding Co. for $355 million. Proceeds not used in the acquisition will be used for working capital and general corporate purposes.
Cott is a beverage company based in Toronto and Tampa, Fla. Concord, N.C.-based S&D is a premium coffee roaster and provider of customized coffee, tea and extract solutions.
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