Hawkins enters $150 million amended, restated five-year revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 3 – Hawkins Inc. amended and restated its credit agreement with U.S. Bank NA as bookrunner, lead arranger and administrative agent on Friday to provide for a $150 million five-year senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

There is a $5 million subfacility for letters of credit and a $15 million subfacility for swingline loans.

Borrowings bear interest at Libor plus a margin ranging from 85 basis points to 135 bps, and the commitment fee ranges from 15 bps to 25 bps, both depending on the company’s leverage ratio.

Hawkins used about $91 million of the proceeds to refinance obligations under its existing credit agreement. Remaining amounts may be used for working capital, capital expenditures, restricted payments and permitted acquisitions and other general corporate purposes.

The revolver is secured by substantially all of the personal property assets of the company and its subsidiaries.

Hawkins must maintain a minimum fixed charge coverage ratio of 1.15x and a maximum total cash flow leverage ratio of 3x.

The credit agreement matures on Nov. 30, 2023.

Hawkins is a Roseville, Minn.-based distributor, blender and manufacturer of bulk and specialty chemicals.

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