WINSTON-SALEM, N.C., June 25, 2018 (GLOBE NEWSWIRE) -- Primo Water Corporation (Nasdaq:PRMW) the leading provider of multi-gallon purified bottled water, self-service refill water and water dispensers, today announced that it has successfully completed the refinancing of its existing credit facilities with a new $220.0 million senior secured credit facility (the “New Senior Credit Facility”). SunTrust Robinson Humphrey was the lead arranger of the New Senior Credit Facility with BMO Harris Bank, N.A., U.S. Bank, National Association, and JPM Securities, LLC as joint lead arrangers.
The proceeds from the New Senior Credit Facility along with the proceeds from the recently completed follow-on equity offering are being used to repay the existing $186.0 million senior credit facility and the 9-1/16% Junior Subordinated Deferrable Interest Debentures.
The New Senior Credit Facility provides a $190.0 million term loan and a $30.0 million revolving credit facility that matures in June of 2023. The New Senior Credit Facility has an interest rate beginning at LIBOR plus 2.50%, which is adjusted downward based upon the consolidated leverage ratio.
As a result of the refinancing, Primo expects interest expense of approximately $5.0 million under the New Senior Credit Facility for the six months ended December 31, 2018. This represents a savings of approximately $5.5 million in interest expense in the second half of 2018, when compared to the prior facilities. Primo intends to use the interest savings for working capital purposes, including marketing initiatives designed to accelerate growth.
About Primo Water Corporation
Primo Water Corporation (Nasdaq:PRMW) (“Primo” or “the Company”) is an environmentally and ethically responsible company with a purpose of inspiring healthier lives through better water. Primo is North America's leading single source provider of water dispensers, multi-gallon purified bottled water, and self-service refill water. Primo's Dispensers, Exchange and Refill products are available in over 45,000 retail locations and online throughout the United States and Canada. For more information and to learn more about Primo Water, please visit our website at www.primowater.com.
