HF Foods expands revolving credit facility to $140 million under amended JPMorgan-led loan deal
HFFG•Amended credit facility and refinancing terms
HF Foods entered Amendment No. 7 to its 2022 credit agreement with JPMorgan as agent, TD Bank and Fifth Third as lenders; Wells Fargo exited.
- The asset-based revolving credit facility was expanded to $140 million from $125 million.
- The revolving maturity was extended to July 29, 2031.
- The term loans were refinanced with an additional $40.1 million advance; the term loan balance was reset to $125 million.
- The term loan maturity was set for July 29, 2036.
- The term loans amortize at about $0.7 million monthly.
- A $6.8 million prepayment is required if the Searay Foods acquisition misses a 120-day deadline.
- The facility is secured by liens on substantially all borrower and guarantor assets, and covenants include a 1.10 fixed-charge coverage ratio and minimum availability of $12.5 million.
