Yildiz Holding AS, the global sweets company owned by Turkey’s richest man, agreed with the bank that’s representing creditors on terms to refinance as much as $7 billion of debt, four people with knowledge of the matter said.
Yildiz signed a memorandum of understanding with Yapi Kredi on Friday, said the people, who asked not to be named because the deal hasn’t yet been made public and is subject to individual assessments by the banks. An agreement with all banks could be signed by March 30, one of the people said.
The maturity of the new loan will be four years with an option to extend for another four years if the outstanding debt falls below a certain threshold, the person said. Yildiz Holding will provide full collateral and there will be few interim payments, the person said.
Yildiz Holding, one of Turkey’s largest companies, has been on a global buying spree over the past decade or so, snapping up assets including Belgium’s Godiva Chocolates, the U.K.’s United Biscuits Holdings Plc and DeMet’s Candy Co. in the U.S.
Last month, the company requested the largest loan ever from Turkish banks to replace its existing facilities, citing difficulties with a current finance structure that requires it to make monthly loan repayments that can reach more than $1 billion.
Yildiz’s snack maker Ulker Biskuvi Sanayi AS fell as much as 1 percent to 21.90 liras in Istanbul. The group’s private equity arm Gozde Girisim Sermayesi rose as much as 1.3 percent to 5.32 liras, while its frozen food producer Kerevitas Gida Sanayii ve Ticaret AS fell as much as 0.7 percent.
Yildiz Holding declined to comment, while Yapi Kredi didn’t immediately respond to requests for comment.