Flowers Foods Announces New $300 Million Term Loan and Amendments To Its $500 Million Revolving Credit Facility and Existing Term Loan

Apr 08, 2013, 17:00 ET from Flowers Foods, Inc.

THOMASVILLE, Ga., April 8, 2013 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today announced it has entered into a senior unsecured delayed-drawn term loan facility with a commitment of up to $300 million to help finance the pending acquisition of certain brands and assets of Hostess Brands, Inc., and pay certain acquisition-related costs and expenses. Deutsche Bank AG New York Branch and Bank of America, N.A., served as agents for the syndicate of lenders that participated in the financing.


Flowers Foods also announced it has amended its existing $500 million senior unsecured revolving loan facility and existing unsecured term loan. The amendments provide for less restrictive leverage ratios and certain more favorable covenant terms, update the base forms of the existing agreements to address changes in law, and include applicable conforming changes in light of the new term loan. 

"We are pleased to have financing in place for the pending acquisition of the Hostess bread assets. The regulatory review of the proposed acquisition is underway and we look forward to completing the Hostess transaction once that review is completed. The new term loan balances near-term and longer-term debt, and will allow us to delever in keeping with our long-term financial objectives," said R. Steve Kinsey, executive vice president and chief financial officer.

About Flowers Foods

Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of packaged bakery foods in the United States with 2012 sales of $3.05 billion. Flowers operates 44 bakeries that produce a wide range of bakery products. Among the company's top brands are Nature's Own and Tastykake. Learn more at

Statements contained in this press release that are not historical facts are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company's prospects in general include, but are not limited to, (a) competitive conditions in the baked foods industry, including promotional and price competition, (b) changes in consumer demand for our products, (c) the success of productivity improvements and new product introductions, (d) a significant reduction in business with any of our major customers including a reduction from adverse developments in any of our customer's business, (e) fluctuations in commodity pricing, (f) our ability to fully integrate recent acquisitions into our business,  and (g) our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value.  In addition, our results may also be affected by general factors such as economic and business conditions (including the baked foods markets), interest and inflation rates and such other factors as are described in the company's filings with the Securities and Exchange Commission.


SOURCE Flowers Foods, Inc.