MGP Ingredients obtains $300 million revolver led by Wells Fargo

By Rebecca Melvin

New York, Feb. 18 – MGP Ingredients Inc. entered into a $300 million five-year revolving credit facility with a syndicate of lenders led by Well Fargo Bank, NA on Feb. 14, according to a company release.

The revolver contains an accordion under which the company can increase the facility by another $100 million to $400 million.

The new facility replaces the company’s previous $150 million credit facility with Wells Fargo, which was terminated, and it will be used to execute a strategic growth plan, including possible acquisitions.

The interest rate on borrowings will be equal Libor plus 100 basis points to 200 bps, depending on the company’s leverage ratio determined on the last day preceding the fiscal quarter.

The company has agreed to pay fees with respect to the new revolver, including an unused commitment fee, and the credit agreement is secured by a lien on substantially all of the assets of the company.

Additionally, the company has an existing $75 million note purchase and shelf facility with various affiliates of PGIM Inc., which has a remaining shelf facility, subject to lender approval, of $35 million.

MGP Ingredients produces and sells distillery and ingredients products and is based in Atchison, Kan.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.