AIPC amends credit facility, retires $10 million of debt
March 15, 2007
by Eric Schroeder
KANSAS CITY — American Italian Pasta Co. and its lenders have agreed to an amendment to the company’s credit facility that will give the Kansas City-based pasta maker until Dec. 31, 2007, to file fiscal 2005 and fiscal 2006 financial statements, with no increased interest charges through that date. Under the previous facility, AIPC would have been required to file the statements by March 31 or face increased interest charges of 2% per year.
AIPC also announced it has used a portion of its excess liquidity to retire $10 million of debt, reducing gross debt to $244.3 million from $254.3 million. Following the debt retirement, AIPC has liquidity resources of $43 million and outstanding debt net of cash of $229 million.
"The amendment to our credit facility, reflecting the strength of our business and our solid relationship with our lenders, allows us to remain focused on business execution and the completion of our restatement process," said Jim Fogarty, chief executive officer. "We continue to be pleased with our liquidity as evidenced by our voluntary prepayment of debt and look forward to availing ourselves of a lower interest rate upon completion of our financial statement filings."