Dean Foods Company (NYSE:DF) Files An 8-K Entry into a Material Definitive Agreement

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Dean Foods Company (NYSE:DF) Files An 8-K Entry into a Material Definitive Agreement

Dean Foods Company (NYSE:DF) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

Completion of Real Estate and Equipment Appraisal Work for Borrowing Base and Amendment to Senior Secured Borrowing Base Revolving Credit Facility

Dean Foods Company, a Delaware corporation (the “Company”), previously entered into a Credit Agreement, dated as of February 22, 2019 (the “Credit Agreement”), by and among the Company, the subsidiary guarantors party thereto, Coöperatieve Rabobank U.A., New York Branch, as administrative agent (the “Administrative Agent”), and the lenders party thereto, to which the lenders party thereto have provided the Company with a senior secured borrowing base revolving credit facility with a maximum facility amount of $265 million (the “Credit Facility”).

Under the Credit Agreement, the Company’s borrowing base was limited to (i) at any time prior to the completion of certain conditions relating to the granting of a security interest in certain of the Company’s equipment and real property and the Company’s election to include such equipment and real property in the borrowing base, $175 million and (ii) thereafter, 65% of the appraised value of the real property and equipment included in the borrowing base at such time.

On June 28, 2019, the Company and the subsidiary guarantors completed the mortgage and appraisal work required under the Credit Agreement for a substantial portion of the covered real property and equipment. The Company entered into a First Amendment to the Credit Agreement (the “Amendment”) with the Administrative Agent and the lenders party thereto to, among other things, permit the Company’s borrowing base to equal 65% of the appraised value of the real property and equipment included in the appraisal report delivered to the Administrative Agent (up to $265 million).

On June 28, 2019, the Company elected to include real estate and equipment located at 16 of its facilities having an appraised value in excess of $450 million in the borrowing base.

This description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

10.1   First Amendment to Credit Agreement, dated as of June 28, 2019, by and among Dean Foods Company; the subsidiary guarantors thereto; the lenders party thereto; and Coöperatieve Rabobank U.A., New York Branch, as Administrative Agent.

DEAN FOODS CO Exhibit
EX-10.1 2 a19-12271_1ex10d1.htm EX-10.1 Exhibit 10.1   FIRST AMENDMENT TO CREDIT AGREEMENT   This FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”),…
To view the full exhibit click here

About Dean Foods Company (NYSE:DF)

Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk and other dairy case products in the United States. The Company operates through manufacturing, marketing, selling and distributing a wide variety of branded and private label dairy case product segment. It manufactures, markets and distributes a variety of branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, juice, tea, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. The Company delivers its products to customer locations in refrigerated trucks or trailers that it owns or leases. Its products are sold on a local or regional basis through its local and regional sales forces. It operates approximately 70 manufacturing facilities in over 30 states located based on customer needs and other market factors.