Freshpet, Inc. announced the closing of an amended credit facility that will replace its primarily term-based existing facility of $30 million and $10 million revolver with a straight $30 million revolver and the ability to increase the revolver by an additional $10 million. The new revolver will mature in September 2020.

City National Bank, a national banking association, was the arranger and administrative agent, according to a regulatory filing.

“The lower rates and fees along with the increased flexibility of this amended facility is another tool to advance our ‘Feed the Growth’ strategy,” Chief Executive Officer Billy Cyr said.

At closing, the company had total borrowings of $5.5 million under the new $30 million revolver, providing the company with $24.5 million of availability. Freshpet expects to fund its business through cash provided by operations for the remainder of 2017, while continuing to reduce the facility usage. The existing facility, which had $7.5 million outstanding, was repaid with proceeds from the new revolver and cash on hand. The new revolver will bear interest at variable rates depending on the Company’s election, either at a base rate or at LIBOR, in each case, plus an applicable margin. Subject to the Company’s leverage ratio, the applicable margin will vary between 0.75 percent and 1.25 percent for base rate loans and 1.75 percent and 2.25 percent for LIBOR loans.