Pinnacle Foods Inc. Launches Proposed Refinancing
Company Strengthens its 2016 Outlook and Reiterates Guidance for 2017
PARSIPPANY, N.J., Jan. 23, 2017 (GLOBE NEWSWIRE) -- On the heels of a strong finish to 2016, Pinnacle Foods Inc. (NYSE:PF) announced today that its indirect wholly-owned subsidiary, Pinnacle Foods Finance LLC, intends to launch a refinancing of its outstanding indebtedness under its senior secured credit facilities. The proposed refinancing is expected to result in interest expense comparable to or slightly below 2016, despite the impact of the rising interest rate environment on the Company’s floating rate debt. It is also expected to improve the Company’s debt maturity profile.
In making the announcement, Pinnacle strengthened its outlook for Adjusted Diluted EPS for 2016 to the high end of its guidance range and indicated that its Total Net Leverage ratio1 for 2016 is now expected to be below 4.25x, primarily due to strong cash management. In addition, the Company reiterated its outlook for Adjusted Diluted EPS for fiscal 2017 in the range of $2.43 to $2.48, excluding the $0.05 benefit expected from the adoption of new tax treatment for stock-based compensation expense and any fees and expenses associated with the proposed refinancing.
The consummation of the refinancing is subject to market and other customary conditions and there can be no assurance that the refinancing will occur. A Current Report on Form 8-K containing additional details regarding the proposed refinancing and the Company’s performance will be filed with the SEC later today.
1 As defined in the Company’s credit facilities.
Note: 2016 data is unaudited.
This press release may contain statements that predict or forecast future events or results, depend on future events for their accuracy or otherwise contain “forward looking statements.” Such forward-looking statements only speak as of the date of this press release and we assume no obligation to update the information included in this press release, except as required by applicable law. Such forward-looking statements include information concerning our possible or assumed future results of operations. These statements often include words such as “approximate,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “forecast,” “may,” “should” or variations of such words or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including but not limited to the risks and uncertainties detailed in our Form 10-K filed with the Securities and Exchange Commission on February 25, 2016. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Unless otherwise required by applicable law, we disclaim any obligation to update our view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made in this press release.
ABOUT PINNACLE FOODS INC.
In more than 85% of American households, consumers reach for Pinnacle Foods brands. Pinnacle Foods is ranked on Fortune Magazine's 2015 Top 1000 companies list. We are a leading producer, marketer and distributor of high-quality branded food products, which have been trusted household names for decades. Headquartered in Parsippany, NJ, our business employs an average of 5400 employees. Our Duncan Hines Grocery segment manages brands such as Duncan Hines® baking mixes and frostings, Vlasic® and Vlasic Farmer's Garden® shelf-stable pickles, Wish-Bone® and Western® salad dressings, Mrs. Butterworth's® and Log Cabin® table syrups, Armour® canned meats, Brooks® and Nalley® chili and chili ingredients, Duncan Hines® Comstock® and Wilderness® pie and pastry fruit fillings and Open Pit® barbecue sauces. Our Birds Eye Frozen segment manages brands such as Birds Eye®, gardein™, Birds Eye Steamfresh®, C&W®, McKenzie's®, and Freshlike® frozen vegetables, Birds Eye Voila!® complete bagged frozen meals, Van de Kamp's® and Mrs. Paul's® frozen prepared seafood, Hungry-Man® frozen dinners and entrees, Aunt Jemima® frozen breakfasts, Lender's® frozen and refrigerated bagels, and Celeste® frozen pizza. Our Specialty Foods segment manages Tim's Cascade Snacks®, Hawaiian® kettle style potato chips, Erin's® popcorn, Snyder of Berlin® and Husman's® snacks in addition to our food service and private label businesses. The acquisition of Boulder Brands adds well-known brands such as Glutino®, Udi's Gluten Free®, Earth Balance®, EVOL® foods, and Smart Balance® to the Pinnacle Foods portfolio. Further information is available at www.pinnaclefoods.com.
Senior Vice President, Investor Relations