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Exhibit 99.1
Aurora Foods Inc.
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NEWS
Contact: Mark Kollar
Broadgate Consultants, Inc.
212-232-2222
FOR IMMEDIATE RELEASE
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Aurora Foods' Agreement with Bondholders
Adds Momentum to Company's Recovery
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ST. LOUIS, August 17, 2000 -- Aurora Foods Inc. (NYSE: AOR) today announced it
has successfully reached an agreement in principle with a steering committee
representing a majority of each of its outstanding issues of senior subordinated
notes. The agreement would result in the Company's being in compliance with
covenants under related indentures; provide the Company with increased financial
flexibility; and enable the Company to continue uninterrupted its recovery that
is underway.
James T. Smith, President and Chief Executive Officer, said, "This
agreement will be another important building block in driving the Aurora
business to reach its full potential. The agreement also demonstrates the
support of our bondholders, reflecting their confidence that the Company will
continue to improve its performance."
The agreement in principle calls for the Company to issue in a private
placement approximately 17.71 shares of its common stock per $1,000 principal
amount of Notes to holders who consent to the amendments or 7,084,312 shares in
aggregate assuming 100% participation of the $400 million principal amount
outstanding. The issues affected are the 9 7/8% Senior Subordinated Notes due
2007 and the 8 3/4% Senior Subordinated Notes Due 2008.
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The amendments will also allow the Company to incur up to $90 million of
additional senior indebtedness to replace an existing $60 million receivables
sale arrangement and increase the call premium on the outstanding Notes by 2%
starting in 2002 for the 9 7/8% Notes and 2003 for the 8 3/4% Notes.
The Company also said that it had received commitments from certain
existing stockholders to infuse approximately $15 million of convertible
preferred stock that will be convertible into its common stock at a price equal
to an average trading price set in the future.
ABOUT AURORA FOODS
Aurora Foods Inc., which is based in St. Louis, is a leading producer and
marketer of premium branded food products including Duncan Hines(R) baking
mixes, Log Cabin(R) and Mrs. Butterworth's(R) syrup, Lender's(R) bagels, Van de
Kamp's(R) and Mrs. Paul's(R) frozen seafood, Aunt Jemima(R) frozen breakfast
products, Celeste(R) frozen pizza and Chef's Choice(R) skillet meals. Aurora's
products can be found in all Retail classes of trade, and Foodservice, and
command strong positions in their respective categories and/or markets.
This announcement is neither a solicitation of consents with respect to Aurora
Foods Inc.'s Senior Subordinated Notes nor an offer of its common stock. Such
solicitation and offer will be made only by means of a confidential private
placement memorandum and consent solicitation to holders of the Company's Senior
Subordinated Notes.
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