TSL Express Daily News

Provides Update Regarding Repurchases of 5.25% Senior Notes due 2027

PARSIPPANY, N.J., July 01, 2025--(BUSINESS WIRE)--B&G Foods, Inc. (NYSE: BGS) announced today that it has completed an amendment to its senior secured credit facility. The amendment temporarily increases the maximum consolidated leverage ratio permitted under its revolving credit facility, decreases the size of its revolving credit facility and modifies certain other terms and conditions.

B&G Foods’ maximum consolidated leverage ratio (defined as the ratio, determined on a pro forma basis, of consolidated net debt, as of the last day of any period of four consecutive fiscal quarters to adjusted EBITDA (as defined in the credit agreement) before share-based compensation for such period), will increase from 7.00 to 1.00 to 7.50 to 1.00 for the quarter ending June 28, 2025 through the quarter ending October 3, 2026 and then the maximum consolidated leverage ratio will decrease to 7.25 to 1.00 for the quarter ending January 2, 2027 before returning to 7.00 to 1.00 for the quarters ending April 3, 2027 and thereafter.

The size of B&G Foods’ revolving credit facility will decrease from $475.0 million to $430.0 million. In addition, for so long as the revolving credit facility is outstanding, the available amount (as defined in the credit agreement) of B&G Foods’ cash that may be used for restricted debt payments and investments will be further restricted to a maximum consolidated leverage ratio of less than or equal to 7.00 to 1.00 after giving effect to such repayment or investment (measured on the date of irrevocable redemption notice so long as payment is made within 90 days) and for restricted payments, including dividends, to a maximum consolidated leverage ratio of less than or equal to 7.25 to 1.00 after giving effect to the restricted payment (measured on the dividend declaration date so long as payment is made within 90 days).

As of June 28, 2025, the last day of B&G Foods’ second quarter of 2025, $235.0 million aggregate principal amount of revolving credit loans remained outstanding.

B&G Foods also announced that during the second quarter of 2025, B&G Foods has repurchased $20.7 million aggregate principal amount of B&G Foods’ 5.25% senior notes due 2027 in open market purchases at an average discounted repurchase price of 89.98% of such principal amount plus accrued and unpaid interest. As of June 28, 2025, $529.3 million aggregate principal amount of the 5.25% senior notes due 2027 remained outstanding.

"We believe that temporarily increasing our maximum consolidated leverage ratio is a prudent measure given the current difficult consumer environment in the packaged foods industry, our working capital needs and tariff uncertainty. As evidenced by our recently announced divestiture of the Don Pepino and Sclafani brands and our repurchases of senior notes due 2027, we continue our efforts to reshape our portfolio through the divestiture of non-core brands and reduce long-term debt. We are also committed to reducing costs," explained Bruce C. Wacha, Executive Vice President of Finance and Chief Financial Officer of B&G Foods.

About B&G Foods, Inc.
Based in Parsippany, New Jersey, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. With B&G Foods’ diverse portfolio of more than 50 brands you know and love, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary’s, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria, there’s a little something for everyone. For more information about B&G Foods and its brands, please visit www.bgfoods.com.