B&G Foods, Inc. (NYSE:BGS) Q1 2024 Earnings Call Transcript

David Palmer: Yes. I think — but I think that’s going to be the story. That stuff you’re talking about. There’s much more math there than there will be for the industry trend that was my comment back on that.

Operator: Your next question is from Carla Casella from JPMorgan.

Carla Casella: I just had a couple of follow-ups. I think — I’m not sure if you said this in your prepared remarks, but I think you paid down $22 million of the term loan B with the Green Giant proceeds in the fourth quarter, and there was another payment coming in first quarter. Was that — is that — do I have that correct? I was assuming another $30-something million in the first quarter, or was there a payment?

Bruce Wacha: So there are two — the way it works through our covenants and now that we’ve got the senior secured notes, there’s got to be a payment to the term loan and then an offer to the new senior secured note holders. And then those new senior secured note holders don’t have to take that payment. If they don’t it goes to the term loan. We kind of detail that in our Q in the subsequent events. So essentially, a fair point to say take what we paid down on the term loan and assume it essentially doubles.

Carla Casella: Okay. And then the Q will get the exact numbers on how big the term loan is?

Bruce Wacha: Yes. It’s about $44 million in total is what we needed to pay down. So again, half of that went to term loan investors right away. On the senior secured notes, very little came back to us. So it will be more towards the term loan. The notes are trading well above par. So as expected, someone is not going to take that money back at par when it’s trading at whatever I want to treat 1 or 4.

Carla Casella: Right. So when do you make that second term loan payment with whatever is left.

Kenneth Keller: In the second quarter.

Carla Casella: Okay, okay. So it wasn’t made in first. That’s what I was checking.

Bruce Wacha: It was not made in the first, no — early days of the second quarter.

Operator: There are no further questions at this time. That concludes the question-and-answer session for today. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect.