Provides leverage ratio financial covenant
relief for current fiscal quarter
ORLANDO,
Fla., Dec. 22, 2022 /PRNewswire/ -- Tupperware
Brands Corporation (NYSE: TUP), a leading global consumer products
company, announces today that it has entered into a second
amendment (the "Second Amendment") to its Credit Agreement dated as
of November 23, 2021 (as amended by
that certain First Amendment to Credit Agreement dated as of
August 1, 2022, the "Credit
Agreement"). The Second Amendment, among other things,
increases the maximum permitted Consolidated Net Leverage Ratio for
the company's current fiscal quarter to allow the company more
financial flexibility with which to further implement its ongoing
Turnaround Plan.
Highlights of the Second Amendment:
- Increases the maximum permitted Consolidated Net Leverage Ratio
for the fiscal quarter ending December 31,
2022 to 5.25 to 1.00 (from 4.25 to 1.00), with the maximum
permitted Consolidated Net Leverage Ratio reducing to 4.25 to 1.00
for the first fiscal quarter ending in calendar year 2023 and 3.75
to 1.00 for each fiscal quarter ending thereafter;
- Shortens the maturity date of the Credit Agreement from
November 23, 2026 to November 23, 2025;
- Reduces the maximum amount that may be borrowed under the
global tranche revolving commitments (together with letters of
credit and sublimit borrowings) from $450
million to $435 million, and
reduces the maximum sublimit for letters of credit from
$50 million to $45 million, with each such reduction expiring on
the date on which the company delivers financial statements for the
fiscal quarter ending on or about December
31, 2023 demonstrating compliance with the financial
covenants;
- Eliminates each of the $15
million Singaporean tranche revolving commitments and the
incremental facility and reduces the Mexican tranche revolving
commitments from $15 million to
$5 million;
- Increases the applicable margin on borrowings under the
facility while the company has a consolidated leverage ratio of
greater than or equal to 4.00 to 1.00, including an applicable
margin for base rate loans (loans denominated in U.S. Dollars)
of:
-
- 2.25 where the consolidated leverage ratio is greater than or
equal to 4.00 to 1.00 but less than 4.50 to 1.00,
- 2.75 where the consolidated leverage ratio is greater than or
equal to 4.50 to 1.00 but less than 5.00 to 1.00,
- 3.25 where the consolidated leverage ratio is greater than or
equal to 5.00 to 1.00 but less than 5.25 to 1.00, and
- 3.75 where the consolidated leverage ratio is greater than or
equal to 5.25 to 1.00.
- Creates additional reporting requirements, account control
agreement requirements, and other requirements and
restrictions.
The company remains in discussions with its lending group
regarding potential additional covenant relief for future fiscal
periods and to provide for appropriate flexibility, under its
covenants, to allow management to implement its strategic
plans. The company is unable to predict whether or when any
further amendment to the Credit Agreement may be entered into, as
well as the terms and conditions of any such amendment.
"This amended agreement allows us to continue to execute on our
dual strategies of fixing the core and expanding access to the
brand during this period of unusual macroeconomic volatility," said
Mariela Matute, Chief Financial
Officer of Tupperware Brands. "We remain confident that our
strategies are the right ones for Tupperware in today's global
consumer environment, and we appreciate the support of our
lenders," she added.
About Tupperware Brands Corporation
Tupperware Brands
Corporation (NYSE: TUP) is a leading global consumer products
company that designs innovative, functional and environmentally
responsible products that people love and trust. Founded in 1946,
Tupperware's signature container created the modern food storage
category that revolutionized the way the world stores, serves and
prepares food. Today, this iconic brand has more than 8,500
functional design and utility patents for solution-oriented kitchen
and home products. With a purpose to nurture a better future,
Tupperware products are an alternative to single-use items.
Tupperware distributes its products into nearly 70 countries
primarily through independent representatives around the world. For
more information, visit Tupperwarebrands.com or follow
Tupperware
on Facebook, Instagram, LinkedIn and Twitter.
Forward-Looking Statements
Statements contained in
this release that are not historical fact and use predictive words
such as "estimates", "potential", "predict", "outlook", "guidance",
"expect", "believe", "intend", "designed", "target", "plans",
"may", "will", "are confident" and similar words are
forward-looking statements. These forward-looking statements and
related assumptions involve risks and uncertainties that could
cause actual results and outcomes to differ materially from any
forward-looking statements or views expressed herein. These risks
and uncertainties include, but are not limited to, the following:
the continuing effects of the novel coronavirus (COVID-19)
pandemic; the successful execution of the Company's Turnaround
Plan; the effects of inflation on the Company's business; the
Company's ability to sustain the same level of growth in net sales
and net income that it recorded in the prior quarters; the success
of the Company's efforts to improve its profitability and liquidity
position and any capital structure actions that it may take; the
Company's access to, and the costs of, financing and other sources
of liquidity and the potential that banks with which the Company
maintains lines of credit may be unable to fulfill their
commitments; the costs and covenant restrictions associated with
the Company's current credit facility with Wells Fargo Bank, N.A.
and the other lenders; the Company's ability to comply with, or
further amend, financial covenants under its credit agreement and
its ability to repay or refinance the debt outstanding under its
current credit facility and take other actions to address its
capital structure, as well as potential downgrades to the Company's
credit ratings; the absence of foreign exchange lines of credit;
the potential impact of management's determination that the Company
may not be able to continue to operate as a going concern; the risk
of foreign-currency fluctuations and currency translation impacts
on the Company's business associated with these fluctuations; the
Company's ability to engage in hedging transactions (including,
without limitation, forwards and swaps) with financial institutions
to mitigate risks relating to foreigncurrency fluctuations and/or
interest rate fluctuations and the possibility that such hedging
transactions, even if entered into, are unsuccessful; the risk of
changes in cash flow resulting from changes in foreign exchange
rates and hedge settlements; unpredictable economic and political
conditions and events globally; and other risks detailed in the
Company's periodic reports as filed in accordance with the
Securities Exchange Act of 1934, as amended. The Company updates
each month the impact of changes in foreign exchange rates versus
the prior year, posting it on Tupperware Brands Foreign Exchange
Translation Impact Update available at
https://ir.tupperwarebrands.com/financial-information/foreignexchange-impact.
Other than updating for changes in foreign currency exchange rates,
the Company does not intend to update forward-looking
information.
Media: Media@tupperware.com, 321-877-6670
Investors: Douglas Lane, douglaslane@tupperware.com,
321-503-9640
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SOURCE Tupperware Brands Corporation
