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Centennial Specialty Foods Completes Financing Transaction
DENVER, March 25 /PRNewswire-FirstCall/ -- Centennial Specialty Foods
Corporation announced today that it has completed a $5,000,000 senior revolving
credit facility with Heartland Bank, which is based in St. Louis, Missouri. The
credit facility has a three year maturity and bears interest at Heartland's base
rate plus 1.5%. The credit facility is secured by substantially all of
Centennial's assets. The senior credit facility was obtained to provide
Centennial additional financial flexibility, as described in Centennial's final
prospectus dated October 29, 2003. The prospectus contained a summary of the
commitment letter previously received from Heartland Bank, which led to the
completion of the senior credit facility. In conjunction with obtaining the new
credit facility, Centennial retired working capital loans aggregating $1.7
million from a number of individual lenders, including Centennial's major
shareholder. Proceeds fromthe new credit facility not drawn down currently
will be used to finance increases in inventory levels, product development,
marketing and working capital requirements.
As outlined in Centennial's final prospectus, Centennial has also now applied
partof the proceeds of its initial public offering to retire the existing first
mortgage of $3.5 million on its production facility. Centennial expects to
realize interest expense savings over the next year, as amounts drawn under the
senior credit facility accrue interest at a lower rate than that charged by the
previous working capital lenders and the previous mortgage debt on the
production facility has been retired.
"Completing this financing relationship with Heartland Bank is a very positive
step for our company. It provides us an additional source of funds, with more
favorable terms than our current financing sources, as we execute our expansion
strategy," said Doug Evans, Chief Financial Officer of Centennial. "We are glad
to have Heartland Bank's support as our senior lender and to have completed our
short-term financing plan, which included our IPO and the purchase of Stokes
Ellis Foods in late 2003, and the retirement of our production facility mortgage
in 2004."
Centennial Specialty Foods Corporation is a manufacturer and distributor of
ethnic Southwestern food products. Its products are sold under the Stokes and
Ellis labels, two well-known Southwestern brands that date back almost 100
years. Principal channels of distribution for Centennial's products are grocery
retailers, superstores and club stores in Colorado and, to a lesser extent,
several major metropolitan markets in adjoining states. More information about
Centennial can be found on its website at
http://www.centennialspecialtyfoods.com/.
Note Regarding Forward Looking Statements:
Certain matters discussed in this press release could contain forward-looking
information that involves risks and uncertainties that could cause actual
results to differ materially fromcurrent trends or expected results. We
identify forward looking statements through our use of words such as "expect,"
"believe," "project," "anticipate," and similar expressions. These risks that
may affect our ability to achieve forward-looking statements are discussed in
our final prospectus in the section entitled "Risk Factors" and other documents
that are on file with the Securities and Exchange Commission.
Stokes and Ellis are registered trademarks of Centennial Specialty Foods
Corporation.
DATASOURCE: Centennial Specialty Foods Corporation
CONTACT: Stephanie Hinkle of Preserve Communications, +1-720-488-5409;
or Jeffrey Nieder of Centennial Specialty Foods Corporation, +1-303-414-4613
Web site: http://www.centennialspecialtyfoods.com/