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SHEBOYGAN, Wis. - Fresh Brands, Inc. here today announced it has completed a new secured three-year $40 million revolving credit facility with LaSalle Bank and U.S. Bank. The new facility replaces the company's unsecured $35 million revolving credit facility that was scheduled to expire April 30, 2004.
"The completion of this new credit agreement is a significant step forward in positioning Fresh Brands for the future," said John H. Dahly, e.v.p. and c.f.o. of Fresh Brands. " We believe the new facility will provide sufficient liquidity to fund all of our currently anticipated operational and capital needs for 2004."
Dahly said that based on the company's current debt and expected cash flow, the interest rates to be initially paid under the new credit facility will be 175 to 200 basis points higher than LIBOR.
"We appreciate the confidence of U.S. Bank in continuing as our business partner and of LaSalle Bank in becoming a new partner with Fresh Brands. With the new credit facility in place, our management team can now focus on improving our financial performance and executing our new operational focus," Dahly said.
Fresh Brands, Inc. is a supermarket retailer and grocery wholesaler through corporate-owned retail, franchised, and independent supermarkets. The corporate-owned and franchised retail supermarkets currently operate under the Piggly Wiggly and Dick's Supermarkets brands in Wisconsin, northern Illinois, and northeastern Iowa.