Convenience food firm Greencore Group plc has announced a new five-year sustainability-linked revolving credit facility (RCF) worth £350 million (€402.5 million).
The new RCF replaces Greencore’s existing £340 million (€391 million) facility and a £45 million (€51.8 million) term loan and extends the UK-based group's average maturity profile to close to 4.5 years, the company said.
The new facility has the option of two additional one-year extensions and includes a £100 million (€115 million) accordion feature, which provides further potential financing facilities.
It incorporates performance targets that align with Greencore’s long-term sustainability strategy.
'New Financial Flexibility'
Dalton Philips, CEO of Greencore commented, "Greencore continues to deliver on its ambition to build a stronger, more efficient business serving our customers and consumers across the UK.
"This new facility provides us with significant new financial flexibility to deliver on our growth objectives while aligning our financing arrangements with our sustainability targets."
The RCF is provided by Allied Irish Banks plc, Barclays Bank Plc, Coöperatieve Rabobank U.A. (trading as Rabobank Dublin), Danske Bank A/S, Irish Branch, HSBC Continental Europe, The Governor and Company of the Bank of Ireland.
Allied Irish Banks plc acted as sustainability co-ordinator and Bank of Ireland acted as agent, while Greencore was advised by IBI Corporate Finance.
Annual Performance
In October, the company said it expects an adjusted operating profit of £74-76 million (€86-88 million) in its 2023 financial year, exceeding market expectations.
Group pro-forma revenue increased by 4%, year on year, in the fourth quarter, while group pro-forma revenue for the full year grew by 13%, the company noted in a trading update.
