2 Sisters Food has secured a refinancing of its business that will support the next stage of its turnaround strategy.
Investors across the UK, US and Europe backed a new £475m bond issued by the company’s parent Boparan Holdings. The move enables the group to repay its existing bonds and loans in full, due in 2021. In addition, a new £80m revolving credit facility will provide extra lending flexibility.
The group stated that the refinancing will enable it to push through the next stages of its development, including accelerating sales and margin performance in its core Poultry and Meals divisions and enabling further cash generation.
CFO Craig Tomkinson commented: “This is very good news for 2 Sisters and its stakeholders. It shows great confidence in our business and by securing funding until 2025, gives us the freedom to execute our plans for the future.
“We are very proud of our results to date in the turnaround of the business, and the de-levering of our balance sheet. This refinance marks a milestone in the progress of the turnaround plan, and gives a platform for further improved free cash flow generation into the future.”
NAM Implication:
- Fingers crossed.
