SunOpta gets $250 million asset-based revolver, $75 million term loan

By Cady Vishniac

Detroit, Jan. 4 – SunOpta Inc. entered into a five-year $250 million asset-based revolving credit facility and a five-year $75 million delayed draw term loan to be used for capital expenditures as of Dec. 31, according to a press release.

The revolver bears interest at Libor plus 150 basis points to 200 bps with a 25 bps step-down when the company’s total leverage ratio is below a certain threshold.

The term loan bears interest at Libor plus 225 bps to 275 bps and can be borrowed up to 18 months from closing.

The margins for both facilities will be set quarterly based on borrowing availability.

The facilities are guaranteed by substantially all of SunOpta’s subsidiaries and, with some exceptions, secured by first-priority liens on substantially all of SunOpta’s and its subsidiaries’ assets.

The company also paid down its credit facility debt, which, ogether with the retirement of $223.5 million of 9˝% second-lien notes due in October 2022, reduces the company’s debt by approximately $355 million. Annual interest is expected to decrease to approximately $4 million from approximately $29 million.

The banking syndicate for the facilities are Bank of America, NA, JP Morgan Chase Bank, NA, Rabobank Nederland, Canadian Branch, Bank of Montreal and Wells Fargo Bank, NA.

The new facility, which replaces one that was set to expire on March 31, 2022, will be used to support SunOpta’s working capital, capital expenditures, and general corporate needs, and to fund strategic initiatives.

SunOpta is a Toronto-based company focused on organic, natural and non-GMO food products.

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