HF Foods Group Inc. Secures Revolving Credit Agreement of Up to $125 Million
HF Foods Group Inc. (NASDAQ: HFFG), a leading food distributor to Asian restaurants across the United States, has amended its Credit Agreement with JPMorgan Chase Bank and Comerica Bank, adding Wells Fargo as a new lender. The amendment increases the Company's aggregate revolving commitment by $25 million to $125 million.
According to Felix Lin, President and CEO, this enhanced credit facility demonstrates their banking partners' growing confidence in HF Foods and will support the company's growth strategy and strategic transformation plan. The additional revolving capacity positions HF Foods to capitalize on favorable market trends and growing demand for Asian food.
HF Foods Group Inc. (NASDAQ: HFFG), un importante distributore alimentare per ristoranti asiatici negli Stati Uniti, ha modificato il suo Contratto di Credito con JPMorgan Chase Bank e Comerica Bank, aggiungendo Wells Fargo come nuovo prestatore. La modifica aumenta l'impegno complessivo di credito rotativo della Società di 25 milioni di dollari a 125 milioni di dollari.
Secondo Felix Lin, Presidente e CEO, questa struttura di credito potenziata dimostra la crescente fiducia dei loro partner bancari in HF Foods e supporterà la strategia di crescita e il piano di trasformazione strategica dell'azienda. La capacità rotativa aggiuntiva posiziona HF Foods per capitalizzare le tendenze di mercato favorevoli e la crescente domanda di cibo asiatico.
HF Foods Group Inc. (NASDAQ: HFFG), un importante distribuidor de alimentos para restaurantes asiáticos en los Estados Unidos, ha modificado su Acuerdo de Crédito con JPMorgan Chase Bank y Comerica Bank, añadiendo a Wells Fargo como nuevo prestamista. La enmienda aumenta el compromiso total de crédito rotativo de la Compañía en 25 millones de dólares a 125 millones de dólares.
Según Felix Lin, Presidente y CEO, esta mejora en la facilidad de crédito demuestra la creciente confianza de sus socios bancarios en HF Foods y apoyará la estrategia de crecimiento y el plan de transformación estratégica de la empresa. La capacidad rotativa adicional posiciona a HF Foods para aprovechar las tendencias de mercado favorables y la creciente demanda de comida asiática.
HF Foods Group Inc. (NASDAQ: HFFG), 미국 내 아시아 레스토랑에 주요 식품을 공급하는 유통업체가 JPMorgan Chase Bank 및 Comerica Bank와의 신용 계약을 수정하고 Wells Fargo를 새로운 대출자로 추가했습니다. 이번 수정으로 회사의 총 회전 신용 한도가 2500만 달러에서 1억 2500만 달러로 증가했습니다.
펠릭스 린(Felix Lin) 사장 겸 CEO에 따르면, 이러한 신용 시설의 향상은 HF Foods에 대한 은행 파트너의 신뢰가 증가하고 있음을 보여주며, 회사의 성장 전략과 전략적 전환 계획을 지원할 것입니다. 추가된 회전 한도는 HF Foods가 유리한 시장 동향과 아시아 음식에 대한 증가하는 수요를 활용할 수 있도록 합니다.
HF Foods Group Inc. (NASDAQ: HFFG), un distributeur alimentaire de premier plan pour les restaurants asiatiques aux États-Unis, a modifié son contrat de crédit avec JPMorgan Chase Bank et Comerica Bank, ajoutant Wells Fargo comme nouveau prêteur. Cette modification augmente l'engagement global de crédit renouvelable de l'entreprise de 25 millions de dollars à 125 millions de dollars.
Selon Felix Lin, Président et CEO, cette facilité de crédit améliorée démontre la confiance croissante de leurs partenaires bancaires dans HF Foods et soutiendra la stratégie de croissance et le plan de transformation stratégique de l'entreprise. La capacité de crédit renouvelable supplémentaire positionne HF Foods pour tirer parti des tendances favorables du marché et de la demande croissante de nourriture asiatique.
HF Foods Group Inc. (NASDAQ: HFFG), ein führender Lebensmittelhändler für asiatische Restaurants in den Vereinigten Staaten, hat seinen Kreditvertrag mit der JPMorgan Chase Bank und der Comerica Bank geändert und Wells Fargo als neuen Kreditgeber hinzugefügt. Die Änderung erhöht das gesamte revolvierende Engagement des Unternehmens um 25 Millionen Dollar auf 125 Millionen Dollar.
Laut Felix Lin, Präsident und CEO, zeigt diese verbesserte Kreditfazilität das wachsende Vertrauen ihrer Bankpartner in HF Foods und wird die Wachstumsstrategie und den strategischen Transformationsplan des Unternehmens unterstützen. Die zusätzliche revolvierende Kapazität positioniert HF Foods, um von günstigen Markttrends und der wachsenden Nachfrage nach asiatischer Küche zu profitieren.
- Secured increased credit facility from $100M to $125M (+$25M)
- Added Wells Fargo as new lending partner, strengthening banking relationships
- Enhanced financial flexibility for growth and strategic initiatives
- Increased debt capacity could lead to higher leverage and financial risk
Insights
The amended credit agreement, increasing the revolving facility to
The addition of Wells Fargo as a third major lender alongside JPMorgan Chase and Comerica Bank is strategically important, as it diversifies the company's funding sources and potentially provides access to additional banking services and expertise. This multi-bank syndication typically suggests robust underwriting standards have been met and signals strong creditworthiness to the market.
The timing of this enhanced credit facility is strategic, coinciding with favorable demographic trends in the Asian food service sector. The U.S. Asian food market has been experiencing sustained growth, driven by increasing consumer demand for diverse culinary options and the expansion of Asian restaurant concepts. This expanded credit line positions HF Foods to capitalize on these trends through potential strategic acquisitions, inventory expansion, or operational improvements.
However, investors should note that while increased credit capacity provides greater financial flexibility, it also carries implicit risks. The company's ability to effectively deploy this capital while maintaining healthy leverage ratios will be crucial. The key metrics to monitor will be the utilization rate of the credit facility, working capital efficiency, and the conversion of this additional liquidity into profitable growth.
Amended agreement to provide enhanced financial flexibility to help support HF Foods’ growth strategy
LAS VEGAS, Feb. 18, 2025 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG) (“HF Foods” or the “Company”), a leading food distributor to Asian restaurants across the United States, announced today it has amended its Credit Agreement with JPMorgan Chase Bank and Comerica Bank. The amended agreement also adds Wells Fargo as an additional lender, and increases the Company’s aggregate revolving commitment by
“This amended credit agreement further demonstrates our banking partners’ continued and growing confidence in HF Foods and the opportunities ahead for our business,” said Felix Lin, President and CEO of HF Foods. “This additional revolver capacity will help support our growth strategy and the continued execution of our strategic transformation plan by providing us with further financial flexibility. With our strong partners, JPMorgan Chase Bank, Comerica Bank, and Wells Fargo, HF Foods is well-positioned to capitalize on favorable market trends and demographics driving the growing demand for Asian food.”
Additional information about the Credit Agreement and the amendment can be found on the form 8-K that was filed with the SEC on February 18, 2025.
About HF Foods Group Inc.
HF Foods Group Inc. is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food products to primarily Asian restaurants and other foodservice customers throughout the United States. HF Foods aims to supply the increasing demand for Asian American restaurant cuisine, leveraging its nationwide network of distribution centers and its strong relations with growers and suppliers of fresh, high-quality specialty restaurant food products and supplies in the US, South America, and Asia. Headquartered in Las Vegas, Nevada, HF Foods trades on Nasdaq under the symbol “HFFG”. For more information, please visit www.hffoodsgroup.com.
Forward Looking Statements
All statements in this news release other than statements of historical facts are, or may be deemed to be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as “aims,” “continues,” “expects,” “plans,” “will,” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company’s actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Such factors include, but are not limited to, risks relating to our ability to consummate our operational transformation plan as anticipated, risks relating to the impact of our operational plan on our sales and efficiencies, statements of assumption underlying any of the foregoing, risks disclosed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.
Contact:
ICR
Investors: Anna Kate Heller
Media: Keil Decker
hffoodsgroup@icrinc.com
FAQ
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