New credit agreement for MGP Ingredients

by Josh Sosland
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ATCHISON, KAS. — MGP Ingredients, Inc. on May 5 entered into a new secured credit agreement for accounts receivable and inventory.

The agreement, with Commerce Bank, BMO Capital Markets Financing, Inc. and National City Bank, replaces a $30 million line of credit agreement with Commerce and provides for a $40 million, three-year revolving credit facility and a $25 million, five-year term loan facility.

The pact contains "accordion" features that give lenders the option to offer a one-time increase in the revolving credit commitment of up to $20 million and a one-time term loan increase of up to $10 million.

MGPI may borrow against the term loan facility until May 4, 2009, with principal payments commencing shortly thereafter and concluding in May 2013. The outstanding balance of the revolving credit loans is due in May 2011.

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