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 Companys 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 Companys equipment and real property and the Companys 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 Companys 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.
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.