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Nomad Foods Plans To Refinance Existing Term Loan Facility

Published on Jun 8 2021 12:29 PM in A-Brands tagged: birds eye / Nomad Foods / Refinancing / Term Loan

Nomad Foods Plans To Refinance Existing Term Loan Facility

Birds Eye parent Nomad Foods has announced that it intends to refinance its existing €553 million senior secured term loan facility through a new seven-year term facility under its existing senior facility agreement.

It also intends to upsize its existing revolving cash flow facility to a new €175 million, five-year revolving cash flow facility.

The company also added that there is no assurance that the refinancing will occur, or, if it does, as to the terms of the refinancing.

Additional Financing

The frozen food giant said it is contemplating the potential incurrence of additional senior secured financing of up to €750 million in aggregate principal amount, subject to market conditions.

The company will use proceeds from the financing to repay its entire €400 million aggregate principal amount of its senior secured notes due 2024, repay its existing Term Loan B, fund the acquisition of Fortenova Group’s Frozen Food Business, and pay transaction fees and expenses.

Nomad expects its leverage ratio to be approximately 3.7x after the transaction and uses of the proceeds from the financing.


Fortenova Group sold its Frozen Food Business Group (FFBG) to Nomad Foods for €615 million in March of this year.

The deal includes the business units Ledo Plus (Croatia), Ledo Čitluk (Bosnia and Herzegovina), and Frikom (Serbia), as well as other smaller affiliated companies.

Last month, the company reported a 'strong start' to its new financial year with an organic revenue growth of 1.8%, comprised of a 1.9% increase in volume/mix and a 0.1% decrease in price, in the first quarter.

The adjusted gross margin increased 130 basis points to 30.4%, as a favourable mix in its base business, strong procurement execution, and lower promotional activity more than offset dilution from the Findus Switzerland acquisition.

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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