Bakery firm Aryzta will repay the full outstanding principal amount of its remaining CHF 325.4 million (€346.14 million) hybrid bond on 25 October 2024 - the scheduled date of its next interest payment.
The payment will be funded through a combination of cash and drawings on the new revolving credit facility that closed in August 2024, the Cuisine de France parent added.
Including this redemption, between 2021 and 2024 Aryzta has repaid over €880 million in hybrid principal as well as deferred and compounded interest through free cash flow and bank financing.
The repayment has allowed the company to gradually improve the balance sheet structure, optimise its total net debt leverage to below three-times EBITDA, and significantly reduce its financing costs, the company added.
'Disciplined Financial Approach'
Chair and interim CEO, Urs Jordi, stated, “The redemption of this CHF hybrid bond reflects our prudent and disciplined financial approach towards improving our capital structure and reducing our interest costs.
“It is consistent with our strategy to improve shareholder returns and reflects our continued confidence in our business.”
Recently, the bakery firm announced the appointment of Michael Schai as its new chief executive, effective from 1 January next year.
In a statement, Aryzta said that Schai has a 'strong global track record in the food industry across Australia, Asia-Pacific and Europe'.
In August, the bakery firm said that it has achieved five out of six mid-term performance targets 'ahead of schedule', adding that it is 'on track' to deliver the remaining margin improvement target of at least 14.5%.
EBITDA at the business increased 7% to €149.8 million, while EBITDA margin was up 100 basis points to 14.2%. Free cash flow at the business reached €53 million.
