Darling Ingredients extends term loan A, revolver, makes other changes

By Angela McDaniels

Tacoma, Wash., Dec. 20 – Darling Ingredients Inc. amended its credit agreement on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment

• Extends the maturity date of the term loan A and the revolving credit facility to Dec. 16, 2021 from Sept. 27, 2018, subject to a 91-day springing adjustment if the term loan B is outstanding 91 days prior to its Jan. 6, 2021 maturity date;

• Resets the amortization schedule of the term loan A to its original schedule;

• Eliminates two categories in the pricing grid on borrowings under the term loan A and revolver. The margin now ranges from 125 basis points to 250 bps instead of from 125 bps to 300 bps;

• Eliminates the secured leverage ratio financial maintenance covenant so that the company’s financial covenants consist of maintaining of total leverage ratio not to exceed 5:5 times and maintaining an interest coverage ratio of not less than 3 times;

• Modifies some of the negative covenants to include a senior leverage ratio incurrence-based test and to increase the allowances for certain actions, including debt, investments and restricted payments; and

• Makes other updates and changes.

J.P. Morgan Securities LLC and Bank of Montreal are the bookrunners and co-lead arrangers. Goldman Sachs Bank USA is an additional bookrunner and co-lead arranger for the term loan B. JPMorgan Chase Bank, NA is the administrative agent.

Darling is a Irving, Texas-based developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients

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