Premier Foods has obtained unanimous consent from its banking syndicate, swap counter-parties and pension schemes to the terms of a four year refinancing package that will allow the company to execute its new growth strategies.
The refinancing package is subject to the formalities of final documents being signed which are expected by the end of March.
Under the terms of the package, banking facilities of £1.2bn have been extended from December 2013 to June 2016. Covenants have also been reset to reflect the group’s growth priorities of focusing investment behind eight Power Brands, strengthening its capabilities, reducing costs and divesting selected businesses.
The total interest rate swap portfolio, including previously restructured swaps, will be restructured into an additional term loan of approximately £200mwhich will have the effect of reducing the group’s interest expense. The trustees of the group’s pension schemes have agreed to defer deficit contribution payments until 2014.
The group reiterates that it expects overall financial results for 2011, both reported and underlying, to be at the lower end of market expectations and that its current focus continues to be to stabilise the business and invest in its recovery and future growth.
Source: Premier Foods
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