Hostess Brands Announces Completion of Refinancing Transaction
30 Juin 2023 - 10:05PM
Business Wire
Hostess Brands, Inc. (NASDAQ: TWNK), (the "Company”, “we”,
“our”) today announced the refinancing of its First Lien Credit
Agreement including its $983 million term loan due August 2025 (the
“Existing Term Loan”) and $100 million revolving line of credit due
August 2024. The Company closed on a new First Lien Credit
Agreement containing a $985 million term loan (the "New Term
Loan"), which will mature in June 2030, and a revolving line of
credit of $200 million, which will mature in June 2028 (the “New
Revolver”). The net proceeds from the New Term Loan were used to
repay all outstanding principal under its Existing Term Loan and
fund a portion of the related costs.
“We are extremely pleased with the results of our refinancing,”
said Travis Leonard, Chief Financial Officer, “We believe that
strong demand for the New Term Loan resulted in an attractive
interest rate of SOFR plus 2.50% and an issue price of 99.25,
representing one of the tightest priced syndicated loans recently
issued for our ratings category. The ability to extend our debt
maturity from 2025 to 2030 with minimal impact to our future
interest while gaining additional liquidity through the New
Revolver highlights our strong operating performance and the
strength of our credit profile. We believe that the successful
refinancing coupled with our highly cash generative and
differentiated business model continues to give us significant
financial flexibility to execute on our strategic objectives and
drive strong shareholder returns."
In addition, the Company recently received an update to a
positive outlook on its corporate credit rating from Moody’s
Investor Services.
JPMorgan Chase Bank, N.A., BofA Securities, Inc., Citibank,
N.A., Goldman Sachs Bank USA and Morgan Stanley Senior Funding,
Inc. acted as joint lead arrangers and joint book runners for the
New Term Loan.
About Hostess Brands, Inc.
Hostess Brands, Inc. (NASDAQ: TWNK) is a premier snacking
company with a portfolio of iconic brands and a mission to inspire
moments of joy by putting our heart into everything we do. Hostess
Brands is proud to make America’s No. 1 cupcake, mini donut and
zero sugar cookie brands. With annual sales of $1.4 billion and
approximately 3,000 dedicated team members, Hostess Brands produces
new and classic snacks, including Hostess® Donettes®, Twinkies®,
CupCakes, Ding Dongs® and Zingers®, as well as a variety of
Voortman® cookies and wafers. For more information about Hostess
Brands please visit hostessbrands.com.
Forward-Looking Statements
This press release contains statements reflecting the Company’s
views about its future performance that constitute “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, that involve substantial risks and
uncertainties. Forward-looking statements are generally identified
through the inclusion of words such as “believes,” “expects,”
“intends,” “estimates,” “projects,” “anticipates,” “will,” “plan,”
“may,” “should,” or similar language. Statements addressing the
Company’s future operating performance and statements addressing
events and developments that the Company expects or anticipates
will occur are also considered as forward-looking statements. All
forward-looking statements included herein are made only as of the
date hereof.
These statements inherently involve risks and uncertainties that
could cause actual results to differ materially from those
anticipated in such forward-looking statements. These risks and
uncertainties include, but are not limited to, maintaining,
extending and expanding the Company’s reputation and brand image;
leveraging the Company’s brand value to compete against
lower-priced alternative brands; the ability to pass cost increases
on to our customers; correctly predicting, identifying and
interpreting changes in consumer preferences and demand and
offering new products to meet those changes; protecting
intellectual property rights; operating in a highly competitive
industry; the ability to maintain or add additional shelf or retail
space for the Company’s products; the ability to identify or
complete strategic acquisitions, alliances, divestitures or joint
ventures; our ability to successfully integrate, achieve expected
synergies and manage our acquired businesses and brands; the
ability to integrate and manage capital investments; the ability to
manage changes in our manufacturing processes resulting from the
expansion of our business and operations, including with respect to
cost-savings initiatives and the introduction of new technologies
and products; the ability to drive revenue growth in key products
or add products that are faster-growing and more profitable;
volatility in commodity, energy, and other input prices due to
inflationary pressures and the ability to adjust pricing to cover
increased costs; loss of one or more of our co-manufacturing
arrangements; significant changes in the availability and pricing
of transportation; negative impacts of climate change; dependence
on major customers; increased labor and employee related costs;
strikes or work stoppages; product liability claims, product
recalls, or regulatory enforcement actions; the ability to produce
and successfully market products with extended shelf life;
dependence on third parties for significant services; unanticipated
business disruptions; adverse impact or disruption to our business
caused by pandemics or outbreaks of highly infectious or contagious
diseases; disruptions in global economy due to the Russia and
Ukraine conflict; geographic focus could make the Company
particularly vulnerable to economic and other events and trends in
North America; consolidation of retail customers; unsuccessful
implementation of business strategies to reduce costs; increased
costs to comply with governmental regulation; failures,
unavailability, or disruptions of the Company’s information
technology systems; dependence on key personnel or a highly skilled
and diverse workforce; the Company’s ability to finance
indebtedness on terms favorable to the Company; and other risks as
set forth from time to time in the Company’s Securities and
Exchange Commission filings.
As a result of a number of known and unknown risks and
uncertainties, the Company’s actual results or performance may be
materially different from those expressed or implied by these
forward-looking statements. Risks and uncertainties are identified
and discussed in Item 1A-Risk Factors in the Company’s Annual
Report on Form 10-K for 2022, filed on February 21, 2023. All
subsequent written or oral forward-looking statements attributable
to us or persons acting on the Company’s behalf are expressly
qualified in their entirety by these risk factors. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events, or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230630935339/en/
Investors, please contact: Amit Sharma asharma@hostessbrands.com
Media, please contact: Jenna Greene jenna.greene@clynch.com
Hostess Brands (NASDAQ:TWNK)
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