Soft drinks producer and supplier Cott has put in place a $100 million credit facility that will roll up in one financing U.S., U.K. and Canadian credits. The deal, which includes a $95 million multi-currency revolver and a $5 million Mexican revolver, can be increased by $50 million to $150 million subject to availability.
The new deal will bring Cott a more flexible structure as it allows the company to draw down across the entire credit without being subject to borrowing limits on a particular country credit, said Edmund O'Keefe, Cott's v.p of investor relations and corporate development. "The ability, flexibility and capability to have a corporate-wide credit facility catered to our needs in all the key markets, Canada, U.S., U.K., and now Mexico, was a logical progression for us as an organization," he noted.
The new credit replaces a $122 million North American facility allocated between the U.S. and Canada and a $28 million U.K credit set to expire later this year. The deal is led by Wachovia Bank and Bank of Montreal.
The previous credits were expiring this year, O'Keefe said, adding that the company chose some banks and Wachovia brought in others. Lehman Brothers was the lead bank on the prior U.S. and Canadian credits, but it is not participating in the new deal. He declined to elaborate on reasons for the change. In the previous credit Bank of Montreal was the executing bank for the Canadian credit. Wachovia was the swing-line lender responsible for cash management in the prior U.S. facility. O'Keefe declined to provide pricing but said the new deal is more favorable, reflecting an increase in the company's sales and profitability.