Primo Water Corporation has entered into a new $35 million credit facility with Prudential Insurance Company of America and its affiliates.

The new credit facility provides up to $35 million in borrowing availability and is made up of a $15 million revolving credit facility that matures in June of 2019 and $20 million in term notes with final maturities in June of 2021. The revolving portion of the credit facility has an interest rate of LIBOR plus 4.25% and the term notes have an interest rate of 7.8%, which reflects a significant reduction from the rate of the company's prior debt. The company used proceeds from the new credit facility to repay its existing debt and anticipates having additional future availability under the revolving portion of the new credit facility for general working capital purposes. As of the closing date, the company has $9.5 million in availability under the revolving portion of the credit facility.

"We are pleased to announce the completion of the new credit facility with substantial improvements in borrowing costs and increased borrowing availability," commented Mark Castaneda, Primo Water's Chief Financial Officer. "We expect the new credit facility will save over $2.0 million in interest expense annually. In addition, we expect that the lower cost of borrowing will provide capital to fund future growth in our water and dispenser businesses."

Primo Water Corporation is a leading provider of multi-gallon purified bottled water, self-service refill water and water dispensers sold through major retailers throughout the United States and Canada.