Primo Water expects to save US$2m a year on interest repayments after signing a new US$35m credit facility.

The North Carolina-based company said yesterday the lower cost of borrowing will free up capital to fund growth in its water and dispenser businesses. Primo has now paid off existing debt and expects to have additional funds for “general working capital purposes”, it said. 

Primo CFO Mark Castaneda said the facility offers “substantial improvements in borrowing costs and increased borrowing availability”.

Primo sells multi-gallon purified bottled water, self-service refill water and water dispensers through major retailers in the US and Canada. In November it teamed up with DS Waters in a US distribution deal.