As I've said on my board. I'm a glutton for punishment in the food group of late. I guess it will be up to buying an existing business at a deep discount, replacing the sold business on an accretive basis & innovation of existing businesses. Mentioned below, I was concerned HSY cherry picked a good business. I haven't added yet. Prices eventually adjust to what the market see fit. IMO many times at some point after a adjustment down. A consolidation is in order. I am a high risk taker, but balance that with lower risk.
10K
B&G Foods, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
(Unaudited)
On November 20, 2017, we again refinanced our senior secured credit facility. This second refinancing increased the principal amount of the tranche B term loans by $10.0 million to $650.1 million, reduced by 25 basis points the spread over LIBOR or the applicable base rate on the tranche B term loans and any revolving loans, increased the aggregate commitments under our revolving credit facility from $500.0 million to $700.0 million, and extended the maturity date applicable to our revolving credit facility from June 2019 to November 2022.
We made optional prepayments of aggregate principal amount of our tranche B term loans of $125.0 million in the first quarter of 2018 and $25.0 million in the second quarter of 2018. On October 18, 2018, we made a mandatory prepayment of $352.2 million principal amount of tranche B term loans with the net proceeds of the Pirate Brands sale. On October 19, 2018, we made an optional prepayment of the remaining $147.9 million principal amount of tranche B term loans outstanding under our credit agreement from cash on hand and the proceeds of additional revolving loans under our credit agreement. As a result of the optional and mandatory prepayments of the tranche B term loans, we recognized a loss on extinguishment of debt of $13.1 million in fiscal 2018, including $2.8 million in the first quarter of 2018.
At March 30, 2019, the available borrowing capacity under our revolving credit facility, net of outstanding letters of credit of $2.2 million, was $647.8 million. Proceeds of the revolving credit facility may be used for general corporate purposes, including acquisitions of targets in the same or a similar line of business as our company, subject to specified criteria. At March 30, 2019, there was $50.0 million outstanding under our revolving credit facility
We are required to pay a commitment fee of 0.50% per annum on the unused portion of the revolving credit facility. The maximum letter of credit capacity under the revolving credit facility is $50.0 million, with a fronting fee of 0.25% per annum for all outstanding letters of credit and a letter of credit fee equal to the applicable margin for revolving loans that are Eurodollar (LIBOR) loans. The revolving credit facility matures on November 21, 2022.
The Top 13 Vegan Food Trend Predictions for 2019
Message 32095862
RE-BGS looking to add now the earnings disappointment is at hand.
FWIW- IMO When I see a food company like Beyond Meat go public and get the current out of whack market valuation. I have to wonder if that's a wake up call for innovation at the big food companies. The innovation at Green Giant frozen is what BGS needs more of IMO. What I do find interesting is Hershey Foods is bucking the trend. They paid a high price for Pirate Brands and the stock hit a new high just recently.
P.S.
>It also has plenty of fast-growing competitors. In addition to California-based Impossible Foods, meat purveyor Tyson invested in Jerusalem-based Future Meat Technologies and lab-grown meat producer Memphis Meats.
However, Renaissance Capital, which researches IPOs, said investors are likely to look past the risks, as the company is growing quickly. Beyond Meat's net revenue nearly doubled to $87.9 million in 2018 from $32.6 million the prior year.
https://www.cbsnews.com/news/beyond-meat-ipo-gives-veggie-burger-company-a-1-5-billion-market-value-as-meatless-meat-goes-mainstream/
I thought UNFI was overly punished of late. I still hold some BGS shares. I'm Waiting for BGS earnings in late FEB. Food companies missing earnings will IMO not be treated kindly. So I wait for a possible opportunity. I hope your right on conservative acquisition approach. The disclosure that Hershey's made of Pirates Brands acquisition to be accretive, at the price they paid. This leads me to think it will be hard to replace this higher margin business. In the food industry rising transportation costs were a big issue. Gas prices have come down. So I'm hoping transportation cost are under control now.
https://www.siliconinvestor.com/readmsg.aspx?msgid=32139875&srchtxt=bgs
RE-Time will tell
Nice crawl back so far after the earnings release. The question is, do they maintain the dividend moving forward. Management has set a high priority on it in the past. BGS pays above average. CPB had a nice re-bound so far in it's earnings release. CPB has already taken write downs on healthy brands it previously overpaid for. BGS booked a nice gain on a unit it sold. On the BGS current package foods business. Innovation of existing brands , such as Green giant frozen seems the way to go. This while winding down the traditional aspects of it.
RE-BGS I still own some. I almost pulled the trigger to. I thought they received a good price for the Pirates Booty. Over double what they paid .
Message 29705811
IMO-It definitely helps with the debt servicing and reinforces the dividend. Lots of questions moving forward to think about. I haven't looked into BGS Yet. I wonder if the sales miss excluded Pirates Booty? Not fully or partially counted as a discontinued operation yet? Capital gain on sale moving forward? OTOH RE-forward guidance- It probably hurts earnings somewhat, missing the brand, moving forward.
Message 31517471 |
