Omega Protein enters $55 million senior credit facility
March 27, 2007
by FoodBusinessNews.net Staff
HOUSTON — Omega Protein Corp. has entered into a $55 million senior credit facility with a syndicate of banks led by Bank of America.
The new credit facility is a five-year revolving credit facility of up to $20 million — which includes a $7.5 million sub-limit to issue standby letters of credit and $2.5 million for swing line loans — and a five-year loan facility of $35 million.
"This new credit facility provides the company with more favorable terms than the old facility and should reduce our future borrowing costs," said Joe von Rosenberg, chairman of the board and chief executive officer. "We are pleased with the new relationship with Bank of America, N.A. and the other syndicate banks — Compass Bank, Regions Bank and Farm Credit Bank of Texas."
The new credit facility comes as a replacement of the company’s financing with Abelco Finance. Under this arrangement, $28.7 million under a term loan and $6.5 under revolving loans and letters of credit remained outstanding on the closing date. For termination of this old financing facility, Omega Protein expects to have a charge in first quarter of 2007 for the write-off of loan origination and fees.