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US: Vermont Pure completes US$41.5m debt facility

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Vermont Pure Holdings has closed a Credit Agreement with Bank of America to provide a senior financing facility consisting of term debt, a revolving line of credit, and an acquisition line of credit. The facility refinances the prior senior facility with Webster Bank, as lead lender for its lending group, the water company said yesterday (12 April). Webster Bank is participating in the new facility with Bank of America.

Under the new Credit Agreement, the company became obligated on US$28m of debt in the form of a term note to refinance the previous senior term debt and revolving and acquisition lines of credit.

Additionally, the new facility includes a US$7.5m acquisition line of credit and a US$6m revolving credit facility. At the time of closing, the company said it drew down US$2.056m on the revolving line of credit, which refinanced the then existing credit line.

With the financing, the company has lowered its interest rate by approximately 25 basis points as well as its repayment schedule by almost $1m in the first year of the agreement.

"We are happy to have the financial strength of Bank of America to finance our future growth," said Tim Fallon, Vermont's CEO. "The extension of the acquisition line of credit will assist us in our ongoing strategy of acquiring smaller Home and Office distributors to increase density in our existing markets."

"We continue to focus on reducing our higher rate debt," he added. "In one year, we have reduced our 12% subordinated debt from US$22.6m to US$14m."


Sectors: Water

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