B&G Foods, Inc. announced on July 1, 2025, that it completed an amendment to its senior secured credit facility. The amendment temporarily increases the maximum consolidated leverage ratio permitted under its revolving credit facility from 7.00:1.00 to 7.50:1.00 for the period ending October 3, 2026, before gradually decreasing.
The size of B&G Foods' revolving credit facility was also reduced from $475.0 million to $430.0 million. Additionally, the amendment imposes restrictions on the available cash that can be used for restricted debt payments, investments, and dividends, based on specific leverage ratios.
During the second quarter of 2025, B&G Foods repurchased $20.7 million aggregate principal amount of its 5.25% senior notes due 2027 in open market purchases. These notes were acquired at an average discounted repurchase price of 89.98% of their principal amount, plus accrued interest.
Bruce C. Wacha, CFO, explained that increasing the maximum consolidated leverage ratio is a prudent measure given the difficult consumer environment, working capital needs, and tariff uncertainty. He reiterated the company's commitment to portfolio reshaping, cost reduction, and long-term debt reduction through divestitures and note repurchases.
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