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2 Sisters on firmer footing after group refinancing

Commersial broilers

BOPARAN HOLDINGS, the parent company of 2 Sisters Food Group, has issued a £475m bond that will help it pay down debts owed.

The company has also secured a new £80m revolving credit facility that it said would offer extra lending flexibility if it was required in future.

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Boparan said investors across the UK, US and Europe had backed the firm allowing it to build on a “strong full-year financial performance”.

Accounts for the latest financial year were delayed following a refinance process, but are scheduled for release in the coming days, sources suggest.

Boparan Holdings has existing bonds that were issued in 2014, due for repayment in 2021.

Repayment

Investor documents say that this latest bond issue will primarily go towards repaying those, giving the company more time to execute its turnaround plan that it hopes will see it return to profitability.

Last year the company recorded a £17.5m loss with Companies House.

This new bond is due for repayment in 2025.


‘Good news’

Chief financial officer Craig Tomkinson said: “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.

Refinance

“This refinance marks a milestone in the progress of the turnaround plan, and gives a platform for further improved free cashflow generation into the future.

“Not only is this good news for our business, but all 18,000 colleagues, 16,000 members of our pension schemes, and our investors.

“It provides security and reassurance to the thousands of jobs and livelihoods across our wider supply chain – customers, our suppliers and, in turn, their suppliers.

‘Upbeat’

“We are upbeat about our growth plans and see further opportunities for 2021 as we prepare for a post-COVID and post-Brexit environment.”

Chief executive Ronald Kers added: “It is very gratifying to see the strong support of investors in our new bond offering, which underlines the market’s confidence in our business and its belief in our on-going turnaround strategy.