penford corp (PENX) Key Developments
Penford Corporation Enters into $145 Million Credit Agreement with Banks
Aug 4 14
On August 1, 2014, Penford Corporation entered into a $145 million Credit Agreement among the company, certain of its subsidiary companies, and the following banks: Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., Rabobank Nederland, New York Branch (Rabobank), as Administrative Agent; KeyBank National Association, as Syndication Agent; JPMorgan Chase Bank, N.A. and The Private Bank and Trust company as Co-Documentation Agents; First Midwest Bank; GreenStone Farm Credit Services, ACA; Branch Banking and Trust Company, AgStar Financial Services PCA and Farm Credit Services of America, PCA. The New Credit Agreement replaced the company's Fourth Amended and Restated Credit Agreement dated July 9, 2012 (the Old Credit Agreement). The New Credit Agreement provides the Company with a revolving credit facility in an aggregate principal amount of up to $145 million, provided that the revolving loan commitments in the agreement may be increased under certain conditions. The New Credit Agreement also provides for the issuance of standby letters of credit and swing line loans to the extent provided therein. The maturity date for loans under the New Credit Agreement is August 1, 2019. There are no scheduled principal payments due prior to maturity. Funds drawn under the New Credit Agreement may be used, among other things, to refinance the company's existing indebtedness, for general corporate purposes, and for acquisitions and capital expenditures. Borrowings under the New Credit Agreement bear interest, at the company's option, either at a base rate or a eurodollar rate. The base rate is generally equal to the sum of the higher of the prime rate, the weighted average federal funds rate plus 1/2 of 1%, and a LIBOR index rate for a one-month maturity plus 1%, and the applicable margin. The eurodollar rate is equal to the sum of an adjusted LIBOR rate for the applicable interest period, and the applicable margin. The applicable margin varies from 1% to 2.5% for base rate loans and from 2% to 3.5% for eurodollar loans, depending on the company's leverage ratio (calculated in the manner described in the New Credit Agreement). The company is also required to pay a commitment fee that varies from 0.30% to 0.45% per annum, depending on the company's leverage ratio, on the unused committed amount. The New Credit Agreement contains customary affirmative and negative covenants and events of default generally similar to those in the Old Credit Agreement. In particular, covenants in the New Credit Agreement require the company to meet certain financial metrics and limits, including a maximum leverage ratio, a minimum fixed charge coverage ratio, and a maximum amount of capital expenditures. The New Credit Agreement is guaranteed by each of the company's operating subsidiaries and by liens on substantially all of the company's assets. Upon an event of default, the Administrative Agent, at the request of lenders holding greater than 50% of the combined revolving credit exposure and unused committed amount, may accelerate the amounts due under the New Credit Agreement. Also on August 1, 2014, the company and its operating subsidiaries (as guarantors) entered into a $25 million Delayed Draw Term Loan Credit Agreement with Rabobank as Administrative Agent and lender. The Term Loan Agreement provides the company with a term loan facility in an aggregate principal amount up to $25 million. The term loan facility may be utilized in a series of up to six drawings until the 18-month anniversary of the date of the Term Loan Agreement. Any unused portion of the lender's commitment to make term loans under this facility will expire on the 18 month anniversary of the closing date. The maturity date for loans under the Term Loan Agreement is July 31, 2020. There are no scheduled principal payments due prior to maturity. The company's obligations under the Term Loan Agreement are secured on a second-priority basis by substantially all of the company's assets. Borrowings under the Term Loan Agreement will bear interest in a manner generally similar to borrowings under the New Credit Agreement, except that the applicable margin varies from 2% to 5% for base rate borrowings and from 4% to 7% for eurodollar borrowings, depending on the company's leverage ratio. The company is also required to pay a commitment fee that varies from 0.6% to 0.9% per annum, depending on the company's leverage ratio, on the unused committed amount. The Term Loan Agreement contains covenants, events of default and other provisions that are similar to those in the New Credit Agreement, except that certain covenants have been adjusted to provide additional flexibility and the events of default include defaults under the New Credit Agreement.
Penford Corporation Secures New $170 Million Credit Facilities
Aug 4 14
Penford Corporation closed on new $170 million credit facilities on August 1, 2014, replacing the company's prior revolving credit agreement. The facilities consist of a $145 million 5-year revolving credit agreement and a $25 million 6-year delayed draw term loan. The company intend to use these new facilities to fund additional capital investments and acquisitions that will expand its specialty businesses in food ingredients and high value industrial products. The credit facilities were arranged by Rabobank International as administrative agent, KeyBank National Association as syndication agent, and the following additional lenders participating: JPMorgan Chase Bank, The PrivateBank and Trust Company, First Midwest Bank, GreenStone Farm Credit Services, Branch Banking and Trust Company, AgStar Financial Services PCA and Farm Credit Services of America.
Penford Corporation Presents at Jefferies 2014 Global Industrials Conference, Aug-12-2014 09:00 AM
Jul 24 14
Penford Corporation Presents at Jefferies 2014 Global Industrials Conference, Aug-12-2014 09:00 AM. Venue: Grand Hyatt, 109 E. 42nd St., New York, New York, United States. Speakers: Thomas D. Malkoski, Chief Executive Officer, President and Director.
Penford Corporation Reports Unaudited Consolidated Earnings Results for Third Quarter and Nine Months Ended May 31, 2014
Jul 7 14
Penford Corporation reported unaudited consolidated earnings results for third quarter and nine months ended May 31, 2014. For the quarter, the company’s sales were $119,429,000 against $121,719,000 a year ago. Income from operations was $4,925,000 against $4,275,000 a year ago. Income before income tax was $5,004,000 against $3,423,000 a year ago. Net income was $3,071,000 against $2,058,000 a year ago. Diluted net earnings per common share were $0.24 against $0.16 a year ago. Cash from operating activities was $2,946,000 against $11,228,000 a year ago. EBITDA was $9,012,000 against $7,745,000 a year ago. The decrease in sales was primarily because lower corn prices that were passed through to paper industry customers reduced industrial starch and by-products revenue.
For the nine months, the company’s sales were $334,786,000 against $349,823,000 a year ago. Income from operations was $9,476,000 against $10,825,000 a year ago. Income before income tax was $7,940,000 against $7,831,000 a year ago. Net income was $4,798,000 against $4,956,000 a year ago. Diluted net earnings per common share were $0.37 against $0.39 a year ago. Cash from operating activities was $11,337,000 against $14,580,000 a year ago. EBITDA was $6,225,000 against $4,940,000 a year ago.
Penford Corporation(NasdaqGM:PENX) dropped from Russell 2000 Index
Jun 30 14
Penford Corporation will be removed from the Russell 2000 Index.