Overhill Farms refinances senior debt

Overhill Farms Inc, which has nationwide operations in the frozen food industry, has completed the refinancing of its senior debt.

Pleasant Street Investors LLC, an affiliate of Levine Leichtman Capital Partners II LP, has acquired the senior secured loans previously made by Union Bank of California. Pleasant Street and the company have amended and restated the Union Bank loan agreement on mutually acceptable terms and conditions.

The new senior facility provides term loans that boost Overhill's loan availability from about $13 million to $22 million.

Under its previous asset-based loan facility, the company's borrowing base was reduced over the past several months, restricting its ability to capitalize on its recent plant consolidation and to develop new business.

The new financing includes new financial covenants to reflect the current business climate, including special provisions in case American Airlines seeks protection under federal bankruptcy laws now or in the near future.

Overhill also has completed the consolidation of four of its former assembly facilities into a new 170,000-square-foot facility in Vernon CA.

This new plant is now fully operational and includes 50,000 square feet of cold storage for finished goods and raw materials inventories. Overhill anticipates significant savings through anticipated labor efficiencies, lower refrigeration costs, and a major reduction in outside cold-storage charges.