Item 1.01 Entry into a Material Definitive Agreement.
On January 31, 2023, Lamb Weston Holdings, Inc. (the "Company") entered into the
Fourth Amendment to Credit Agreement (the "Fourth Amendment"), which amends the
Company's existing Credit Agreement, dated as of June 28, 2019 (as amended by
the First Amendment to Credit Agreement, dated as of April 17, 2020, the Second
Amendment to Credit Agreement, dated as of September 23, 2020, and the Third
Amendment to Credit Agreement, dated as of August 11, 2021, the "Existing Credit
Agreement" and, as further amended by the Fourth Amendment, the "Amended Credit
Agreement"), among the Company, the guarantors party thereto, the lenders from
time to time party thereto and AgWest Farm Credit, PCA (as successor by merger
to Northwest Farm Credit Services, PCA), as administrative agent. The Existing
Credit Agreement, among other things, provided for (i) a $300.0 million term
loan facility maturing on June 28, 2024 (the "Term A Loan") and (ii) a $325.0
million term loan facility maturing on April 20, 2025 (the "Term A-2 Loan"). The
Fourth Amendment amends the Existing Credit Agreement for the purpose of, among
other things, (i) establishing a new $450.0 million term loan facility (the
"Term A-3 Loan") and (ii) extending the maturity date of the Term A Loan from
June 28, 2024 to June 28, 2026.
The Term A-3 Loan has a maturity date of January 31, 2030. The Amended Credit
Agreement requires amortization repayments of the Term A-3 Loan, commencing on
the last business day of June 2023, in equal quarterly installments in aggregate
annual amounts equal to 5.00% of the original principal amount of such Term A-3
Loan, with the remaining principal balance payable on the maturity date (subject
to adjustment for prepayments). Borrowings of the Term A-3 Loan bear interest at
Adjusted Term SOFR or the Base Rate (each as defined in the Amended Credit
Agreement) plus an applicable rate ranging from 2.00% to 2.75% for Adjusted Term
SOFR-based loans and from 1.00% to 1.75% for Base Rate-based loans, depending
upon the Company's consolidated net leverage ratio. The Company expects to use
the proceeds of the Term A-3 Loan to fund a portion of the cash consideration
for its previously announced acquisition of the remaining interest in
Lamb-Weston/Meijer v.o.f., which is expected to close in the Company's fourth
quarter of fiscal 2023, subject to customary regulatory approvals.
General
A copy of the Fourth Amendment is filed as Exhibit 10.1 to this Current Report
on Form 8-K and is incorporated herein by reference. The description above is a
summary of the Fourth Amendment, does not purport to be complete, and is
qualified in its entirety by the complete text of the Fourth Amendment.
Certain of the agents and lenders and their affiliates perform various financial
advisory, investment banking and commercial banking services from time to time
for the Company and its affiliates for which they have received customary fees
and compensation for these transactions and may in the future receive customary
fees and compensation.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
10.1 Fourth Amendment to Credit Agreement, dated as of January 31, 2023,
by and among the Company, the guarantors party thereto, the lenders and
voting participants party thereto and AgWest Farm Credit, PCA
(successor by merger to Northwest Farm Credit Services, PCA), as
Administrative Agent
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