Flowers Foods, Inc. Enters into New Credit Facility and Amends Revolving Credit Agreement

Flowers Foods, Inc. has entered into a $400.0 million senior unsecured delayed draw term loan credit facility, referred to as the 2026 Term Loan Facility. This facility is intended to finance the repayment of its $400 million aggregate principal amount of 3.500% senior notes due in October 2026. The company has also amended its Revolving Credit Facility to extend its "Covenant Holiday" through the fiscal quarter ending October 9, 2027, and to align its terms with the new 2026 Term Loan Facility. The 2026 Term Loan Facility allows for borrowings until October 1, 2026, with an initial maturity date three years after funding. Interest rates are based on SOFR or a base rate, plus an applicable margin determined by the company's leverage and debt rating. The agreement includes customary covenants and events of default, with financial covenants related to Leverage Ratio and Interest Coverage Ratio. Subsidiaries are not required to provide guarantees unless the company's debt rating falls below a certain level. The Revolver Amendment also extends the Covenant Holiday and adjusts the pricing grid based on debt ratings.