01:26 PM EDT, 07/31/2024 (MT Newswires) -- High Liner Foods ( HLNFF ) , on Wednesday said it completed a refinancing of its senior secured term loan.

The US$240 million Term Loan B was refinanced to bear interest at the secured overnight financing rate (SOFR) plus 3.25% with a SOFR floor of 0.50%, a 60-basis point reduction, replacing the prior interest rate of SOFR plus 3.75% and the 0.10% credit spread adjustment with a SOFR floor of 0.75%.

The frozen seafood company said proceeds from the refinancing, along with cash on hand, were used to repay the company's existing term debt and pay related fees and expenses.

The maturity was also extended from October, 2026, to July, 2031.

"With the favorable reduction in pricing and the extended maturity period, this improved arrangement gives the Company increased financial flexibility to capitalize on future growth opportunities and invest in key initiatives that will drive long-term success," chief executive Paul Jewer said in the release.

The company anticipates saving approximately US$1.4 million in annual cash interest expense based on current borrowings and SOFR rates.

The company's shares were last seen down $0.04 to $13.39 on the Toronto Stock Exchange.

Price: 13.39, Change: -0.04, Percent Change: -0.30