CHICAGO, May 21, 2020 /PRNewswire/ -- Conagra Brands,
Inc. (NYSE: CAG) today announced continued progress against its
deleveraging efforts and steps to further enhance its balance sheet
strength and financial flexibility. Conagra will pre-pay, effective
May 29, 2020, the remaining
$275 million outstanding under its
senior floating rate notes due October 22,
2020. Conagra has also obtained a $600 million senior three-year unsecured term
loan which can be drawn, in full or in part, through October 2020 with opening pricing of LIBOR plus
150 basis points. While Conagra has not yet drawn on the facility,
this facility provides Conagra with the liquidity to repay, along
with cash on hand, the Company's debt maturities in fiscal 2021.
Farm Credit Services of America and Farm Credit Bank of
Texas served as Co-Lead Arrangers
for the financing with Farm Credit Services of America serving as
the Administrative Agent.
Dave Marberger, executive vice
president and chief financial officer of Conagra Brands, commented,
"Conagra continues to deliver strong financial performance and cash
flow as we support our employees, retail partners and consumers in
the current environment. These strategic steps will enable us to
further strengthen our balance sheet, maintain liquidity and
enhance our financial flexibility. These actions build upon the
significant progress we have made towards our deleveraging targets
in recent quarters and position us to refinance our fiscal 2021
debt maturities at attractive rates with pre-payable debt."
In connection with its capital allocation priorities, Conagra is
committed to deleveraging and maintaining its dividend and solid
investment-grade credit rating. Pro forma for the repayment of the
$275 million in senior floating rate
notes, Conagra will have reduced total gross debt by over
$1.8 billion since the closing of the
Pinnacle acquisition in October 2018.
The Company remains confident it will achieve its fiscal year 2021
net debt to trailing 12 months adjusted EBITDA leverage ratio
target of 3.6 to 3.5.
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG),
headquartered in Chicago, is one
of North America's leading branded
food companies. Guided by an entrepreneurial spirit, Conagra Brands
combines a rich heritage of making great food with a sharpened
focus on innovation. The company's portfolio is evolving to satisfy
people's changing food preferences. Conagra's iconic brands, such
as Birds Eye®, Marie Callender's®,
Banquet®, Healthy Choice®, Slim Jim®, Reddi-wip®, and Vlasic®, as
well as emerging brands, including Angie's® BOOMCHICKAPOP®,
Duke's®, Earth Balance®, Gardein®, and Frontera®, offer choices for
every occasion. For more information, visit
www.conagrabrands.com.
Note on Forward-looking Statements
This document
contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements are based
on management's current expectations and are subject to uncertainty
and changes in circumstances. Readers of this document should
understand that these statements are not guarantees of performance
or results. Many factors could affect our actual financial results
and cause them to vary materially from the expectations contained
in the forward-looking statements, including those set forth in
this document. These risks, uncertainties, and factors include,
among other things: the risk that the cost savings and any other
synergies from the acquisition of Pinnacle Foods Inc. (the
"Pinnacle acquisition") may not be fully realized or may take
longer to realize than expected; the risk that the Pinnacle
acquisition may not be accretive within the expected timeframe or
to the extent anticipated; the risks that the Pinnacle acquisition
and related integration will create disruption to the Company and
its management and impede the achievement of business plans; the
risk that the Pinnacle acquisition will negatively impact the
ability to retain and hire key personnel and maintain relationships
with customers, suppliers, and other third parties; risks related
to our ability to successfully address Pinnacle's business
challenges; risks related to our ability to achieve the intended
benefits of other recent acquisitions and divestitures; risks
associated with general economic and industry conditions; risks
associated with our ability to successfully execute our long-term
value creation strategies, including those in place for specific
brands at Pinnacle before the Pinnacle acquisition; risks related
to our ability to deleverage on currently anticipated timelines,
and to continue to access capital on acceptable terms or at all;
risks related to our ability to execute operating and restructuring
plans and achieve targeted operating efficiencies from cost-saving
initiatives, related to the Pinnacle acquisition and otherwise, and
to benefit from trade optimization programs, related to the
Pinnacle acquisition and otherwise; risks related to the
effectiveness of our hedging activities and ability to respond to
volatility in commodities; risks related to the Company's
competitive environment and related market conditions; risks
related to our ability to respond to changing consumer preferences
and the success of its innovation and marketing investments; risks
related to the ultimate impact of any product recalls and
litigation, including litigation related to the lead paint and
pigment matters, as well as any securities litigation, including
securities class action lawsuits; risk associated with actions of
governments and regulatory bodies that affect our businesses,
including the ultimate impact of new or revised regulations or
interpretations; risks related to the impact of the recent
coronavirus (COVID-19) outbreak on our business,
suppliers, consumers, customers and employees; risks related to the
availability and prices of raw materials, including any negative
effects caused by inflation, weather conditions or health
pandemics; disruptions or inefficiencies in our supply chain and/or
operations, including from the recent COVID-19 outbreak;
risks and uncertainties associated with intangible assets,
including any future goodwill or intangible assets impairment
charges, related to the Pinnacle acquisition or otherwise; the
costs, disruption, and diversion of management's attention due to
the integration of the Pinnacle acquisition; and other risks
described in our reports filed from time to time with the
Securities and Exchange Commission (the "SEC"). We caution readers
not to place undue reliance on any forward-looking statements
included in this report, which speak only as of the date of this
report. We undertake no responsibility to update these statements,
except as required by law.
For more information, please contact:
MEDIA:
Mike Cummins
312-549-5257
Michael.Cummins@conagra.com
INVESTORS: Brian Kearney
312-549-5002
IR@conagra.com
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SOURCE Conagra Brands, Inc.