MGP Ingredients Refinances Credit Facility, Expanding Borrowing Capacity in Support of Growth Strategy
19 February 2020 - 12:30AM
MGP Ingredients, Inc. (Nasdaq:MGPI), a leading
supplier of premium distilled spirits and specialty wheat proteins
and starches, today announced it has entered into a five-year $300
million revolving credit facility with a syndicate of lenders led
by Wells Fargo Bank, N.A. (“Wells Fargo”).
The new facility replaces the Company's $150
million credit facility with Wells Fargo and increases its credit
availability by $150 million.
“This new credit facility further enhances our
access to capital with attractive pricing and terms, providing MGP
additional financial flexibility as we execute our strategic growth
plan, including evaluating acquisition opportunities that
strengthen our position in growing markets,” said Brandon Gall,
vice president and CFO of MGP. “We are pleased to be able to expand
and extend our agreements with this refinancing, doing so with
continued support and partnership from our lenders.”
The new Wells Fargo facility also contains an
"accordion" option whereby, subject to lender approval, the credit
facility may be increased by another $100 million, to a total of
$400 million. Additionally, the Company has an existing $75
million note purchase and shelf facility with various affiliates of
PGIM, Inc. (Prudential), which has a remaining shelf facility,
subject to lender approval, of $35 million.
About MGP Ingredients,
Inc.Founded in 1941, MGP is a leading supplier of premium
distilled spirits and specialty wheat proteins and starches.
Distilled spirits include bourbon and rye whiskeys, gins and
vodkas, which are expertly crafted through a combination of art and
science and backed by a long history of experience. The company's
proteins and starches are created in the same manner and provide a
host of functional, nutritional and sensory benefits for a wide
range of food products. MGP additionally is a top producer of high
quality industrial alcohol for use in both food and non-food
applications. The company is headquartered in Atchison, Kansas,
where distilled alcohol products and food ingredients are produced.
Premium spirits are also distilled and matured at the company's
facility in Lawrenceburg, Indiana. For more information, visit
mgpingredients.com.
Cautionary Note Regarding Forward-Looking
StatementsThis news release contains forward-looking
statements as well as historical information. All statements, other
than statements of historical facts, included in this news release
regarding the prospects of our industry and our prospects, plans,
financial position, business strategy, guidance in operating
income, sales, gross profit, gross margin, earnings per share and
future effective tax rate may constitute forward-looking
statements. In addition, forward-looking statements are usually
identified by or are associated with such words as “intend,”
“plan,” “believe,” “estimate,” “expect,” “anticipate,” “hopeful,”
“should,” “may,” “will,” “could,” “encouraged,” “opportunities,”
“potential,” and/or the negatives or variations of these terms or
similar terminology. They reflect management’s current beliefs and
estimates of future economic circumstances, industry conditions,
Company performance, and Company financial results and are not
guarantees of future performance. All such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
contemplated by the relevant forward-looking statement. Important
factors that could cause actual results to differ materially from
our expectations include, among others: (i) disruptions in
operations at our Atchison facility or our Indiana facility, (ii)
the availability and cost of grain and flour, and fluctuations in
energy costs, (iii) the effectiveness of our grain purchasing
program to mitigate our exposure to commodity price fluctuations,
(iv) the effectiveness or execution of our strategic plan, (v)
potential adverse effects to operations and our system of internal
controls related to the loss of key management personnel, (vi) the
competitive environment and related market conditions, (vii) the
ability to effectively pass raw material price increases on to
customers, (viii) our ability to maintain compliance with all
applicable loan agreement covenants, (ix) our ability to realize
operating efficiencies, (x) actions of governments, and (xi)
consumer tastes and preferences. For further information on these
and other risks and uncertainties that may affect our business,
including risks specific to our Distillery Products and Ingredient
Solutions segments, see Item 1A. Risk Factors of our Annual Report
on Form 10-K for the year ended December 31, 2018.
For More InformationInvestors &
Analysts:Mike Houston646-475-2998 or
investor.relations@mgpingredients.com
Media:Greg Manis913-360-5440 or
greg.manis@mgpingredients.com
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