J.M. Smucker borrows $1.5 billion term loan to fund Ainsworth merger

By Marisa Wong

Morgantown, W.Va., May 14 – J.M. Smucker Co. borrowed on Monday $1.5 billion under its term loan credit agreement dated April 27 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Loan proceeds were used, in part, to finance the company’s previously announced acquisition of Ainsworth Pet Nutrition, LLC and to refinance some of Ainsworth’s outstanding debt.

The company financed the balance of the merger consideration through the issuance of $400 million of short-term commercial paper.

Orrville, Ohio-based Smucker makes fruit spreads, coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk and other food products. Ainsworth is a Meadville, Pa.-based producer, distributor and marketer of premium pet food and pet snacks.

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