B&G Foods amends credit facility, increases leverage ratio temporarily

PARSIPPANY, N.J. - B&G Foods, Inc. (NYSE:BGS) announced Tuesday it has completed an amendment to its senior secured credit facility that temporarily increases its maximum consolidated leverage ratio and reduces the size of its revolving credit facility.

The food manufacturer’s maximum consolidated leverage ratio will increase from 7.00 to 7.50 for the period spanning June 28, 2025, through October 3, 2026. The ratio will then decrease to 7.25 for the quarter ending January 2, 2027, before returning to 7.00 for quarters ending April 3, 2027, and beyond.

As part of the amendment, B&G Foods’ revolving credit facility will decrease from $475.0 million to $430.0 million. The company reported that $235.0 million in revolving credit loans remained outstanding as of June 28, 2025.

The company also disclosed that during the second quarter of 2025, it repurchased $20.7 million aggregate principal amount of its 5.25% senior notes due 2027 in open market purchases at an average discounted price of 89.98% plus accrued interest. Following these repurchases, $529.3 million of these notes remain 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," said Bruce C. Wacha, Executive Vice President of Finance and Chief Financial Officer of B&G Foods.

The company recently announced the divestiture of its Don Pepino and Sclafani brands as part of ongoing efforts to reshape its portfolio through the sale of non-core brands and reduce long-term debt.

Based in Parsippany, New Jersey, B&G Foods manufactures and distributes shelf-stable and frozen foods across the United States, Canada, and Puerto Rico with a portfolio of more than 50 brands.

The information in this article is based on a company press release statement.

In other recent news, B&G Foods, Inc. reported its Q1 2025 financial results, which showed earnings per share of $0.04, falling short of the forecasted $0.16. The company’s net sales were $425.4 million, missing the expected $459.33 million, marking a 10.5% year-over-year decline. Despite these challenges, B&G Foods announced the sale of its Don Pepino and Sclafani brands to Violet Foods LLC, aiming to streamline its portfolio and reduce long-term debt. Additionally, Moody’s adjusted its outlook for B&G Foods from positive to negative, downgrading the ratings on the company’s senior secured first lien debt from B1 to B2. This change was attributed to weaker-than-expected operating performance and increased financial leverage. At the company’s recent annual stockholder meeting, shareholders elected ten directors to the board and ratified KPMG LLP as the independent auditor for the fiscal year ending January 3, 2026. The company is also implementing a cost reduction plan targeting $10 million in savings for 2025. Despite the current difficulties, B&G Foods is focusing on improving sales trends, particularly in its Green Giant product lines, which showed resilience with improved sales in April.

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