SunOpta (STKL) shares are edging higher pre-market after the company said its SunOpta Foods unit will access committed financing of a $330 million senior secured loan to help fund its purchase of Sunrise Holdings (Delaware), rather than sell notes.
The loan will have a one year initial maturity date, which after one year, will automatically be extended into and become a senior secured second lien term loan with a seven-year term. The initial loan will carry an initial interest rate of LIBOR plus an initial spread of 6.00%, which will increase by 50 basis points per quarter until the initial maturity date, subject to a cap.
SunOpta said it won’t go ahead with an offering of $330 million senior secured second lien notes, which was announced in September, due to current market conditions. The shares recently traded at $4.81, close to the bottom of their 52-week low of $4.50 - $14.25.
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