Gold prices set for weekly drop as strong dollar weighs; Trump tariffs in focus
LANSING - Neogen Corporation (NASDAQ: NEOG), a global provider of food safety solutions with a market capitalization of $1.69 billion, has announced the refinancing of its $550 million term loan and its revolving credit facility. The new financial arrangements extend the company’s debt maturity by over two and a half years to April 2030. According to InvestingPro data, the company maintains a healthy current ratio of 3.77, indicating strong short-term liquidity.
The refinanced $450 million term loan and increased $250 million revolving credit facility, up from the previous $150 million, are part of a leverage-neutral transaction. The company has also taken an initial draw of $100 million from the new revolving credit facility. The terms of the new loan include a reduced interest rate, with the annual interest pegged to the Secured Overnight Financing Rate (SOFR) plus a margin of 175 basis points, a decrease of 60 basis points from the previous rate. The refinancing comes as the stock trades near its 52-week low of $7.67, with InvestingPro analysis showing significant price volatility in recent months.
JPMorgan Chase Bank, N.A. led the refinancing as Administrative Agent and Joint Lead Arranger, alongside BofA Securities, Inc., Citizens Bank, N.A., Goldman Sachs Bank USA, and Wells Fargo Securities, LLC as additional Joint Lead Arrangers.
David Naemura, Neogen’s Chief Financial Officer and Chief Operating Officer, expressed satisfaction with the refinancing, highlighting the benefits of lower interest rates and the extended maturity of the debt. He also acknowledged the support of the banking group involved in the refinancing process.
Neogen operates in the Food Safety, Livestock, and Pet Health & Wellness markets, providing a range of products and services aimed at enhancing global food security and animal well-being. The company has a presence in over 140 countries and is recognized as a leader in its field.
This financial move is expected to provide Neogen with more balance sheet flexibility. The information regarding this refinancing is based on a press release statement from Neogen Corporation.
In other recent news, Neogen Corporation reported a modest revenue increase for its second quarter, with revenues reaching $231.3 million, marking a 0.7% rise from the previous year. Despite this growth, the company faced a significant net loss of $456.3 million due to a non-cash goodwill impairment charge linked to the acquisition of the former 3M Food Safety Division. Excluding this charge, Neogen’s adjusted net income was $24.4 million. The company also introduced a new salmonella detection kit aimed at improving pathogen testing in the poultry industry, showcasing its commitment to advancing food safety solutions. In another development, the National Labor Relations Board withdrew its unfair labor practices charge against Neogen, facilitating an upcoming unionization vote among its employees. Additionally, Neogen’s first-quarter fiscal 2025 results revealed an earnings per share (EPS) of $0.11, surpassing analyst forecasts. The company maintained its previous fiscal year guidance, indicating expectations for revenue between $905 million and $925 million. Neogen also announced the retirement plans of its Chief Operating Officer, Doug Jones, and the creation of a Chief Commercial Officer position to focus on global sales and marketing initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.