Menu Foods Income Fund
TSX : MEW.UN

Menu Foods Income Fund

February 03, 2010 17:30 ET

Menu Foods Income Fund Refinances Debt With a Fully-Underwritten Credit Facility

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2010) -

NOT FOR RELEASE OVER US NEWSWIRE SERVICES

Attention Business/Financial Editors:

Menu Foods Income Fund (TSX:MEW.UN) ("Menu" or the "Fund") today announced that it has executed an agreement with its banker, subject to normal terms and conditions, for the provision of US$105,000,000 of fully underwritten credit facilities which is expected to close on or about March 31, 2010. The credit facilities, composed entirely of senior debt, include a US$30,000,000 revolving term facility and a US$75,000,000 non-revolving term facility. The proceeds of these facilities will be used to repay all of Menu's existing debt. The new credit facilities will mature three years from the date of closing.

"It is rare in today's credit markets to be able to obtain a fully underwritten credit facility", stated Paul Henderson, President and Chief Executive Officer, Menu Foods GenPar Limited. "This is a testament to the underlying strength of Menu's business and to its management team that the lender who knows Menu the best would make such a commitment. The new facilities are expected to reduce Menu's cost of borrowing by approximately $2.0 million per annum and puts Menu in an excellent position to continue the rebuilding process which began in 2007 and to take advantage of opportunities that may present themselves in the future."

Menu is a leading North American private-label/contract manufacturer of wet pet food products sold by supermarket retailers, mass merchandisers, pet specialty retailers and other retail and wholesale outlets.

Contact Information

  • Menu Foods GenPar Limited
    Mark Wiens
    Chief Financial Officer
    (905) 826-3870 ext. 420