Nomad Meals, father or mom of the Birds Eye, Iglo and Findus producers, launched Monday it is planning to refinance current loans, enhance its revolving cash circulation facility and downside a model new €750 million ($911.4 million) bond, with a view to finance its present acquisition of Fortenova Group.
The group acknowledged its current €553 million ($672 million) senior secured mortgage will in all probability be restructured beneath new seven-year phrases.
Furthermore, the company intends to restructure and upsize its current revolving cash circulation facility to a model new €175 million ($212.7 million), five-year revolving cash circulation facility.
It is also contemplating additional senior secured financing of as a lot as €750 million ($911.4 million), matter to market conditions.
The proceeds of the funds — along with the model new senior secured time interval mortgage and roughly €290 million ($352.4 million) of cash on its steadiness sheet — will in all probability be used to repay a €400 million ($486.1 million) current bond maturing in 2024, finance the Fortenova Group acquisition and pay transaction prices and payments.
Chunk out of Japanese Europe
In March, Nomad launched it had entered into an settlement to buy Fortenova Group’s Frozen Meals Enterprise Group (FFBG), which contains Ledo, Frikom and completely different important frozen producers, for about €615 million ($724.5 million).
The group first entered into distinctive negotiations to amass the enterprise in January.
FFBG is a primary European frozen meals group working in markets new to Nomad, along with Croatia, Serbia and Bosnia & Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia and Montenegro.
Philipp Hammerli, Bonafide Wealth Administration portfolio supervisor, acknowledged it was anticipated Nomad would downside new debt to finance the acquisition of Fortenova given the group’s cash holdings, and that the rise would possibly suggest the group will give consideration to integration throughout the coming 12 months or additional, considerably than one different quick purchase.
“They will contemplate cash circulation and cut back debt over time so that the stability sheet permits for a model new transaction when the timing is appropriate — nevertheless not the next 12-24 months,” Hammerli suggested IntraFish.
In May, the group reported report revenues and earnings for the first quarter, as a result of it continues to revenue from altering shopper traits launched on by the worldwide pandemic.
The group’s adjusted earnings sooner than curiosity, taxes, depreciation and amortization (EBITDA) elevated 15 p.c to €138 million ($166.3 million) throughout the first quarter, whereas revenue elevated 3.6 p.c to €707 million ($852.1 million).
“This 12 months is off to a strong start,” acknowledged Stefan Descheemaeker, CEO of Nomad Meals, on the time. “We achieved healthful pure revenue improvement nevertheless year-ago comparisons, which mirrored elevated improvement ensuing from pantry loading on the onset of the pandemic.
“These outcomes have us on tempo to ship one different stellar 12 months for Nomad Meals,” he acknowledged.
Shares of Nomad, which commerce on the NYSE, are up virtually 25 p.c as a result of the start of the 12 months.