Kerrygold owner Ornua refinances debt with new € 580m facility
Kerrygold owner Ornua refinanced its debt with a new five-year syndicated bank facility of € 580 million.
The dairy exporter said the new agreement, which runs until 2026, will incorporate key sustainability indicators that address emissions, waste and diversity targets.
Some 200 million euros will finance Ornua’s working capital requirements and “its global growth strategy through strategic capital investments and acquisitions,” the group said.
The remaining 380 million euros will finance the working capital needs of Ornua member suppliers, the Irish dairy processors, he said.
The refinancing, which includes an additional 100 million euros if necessary, will be done through Allied Irish Banks, Bank of Ireland, Bank of America (Europe), HSBC (Continental Europe), Rabobank (Dublin) and Bayern LB.
“The successful refinancing ensures that Ornua retains access to the bank liquidity it needs to implement strategic growth initiatives and strong product price returns for our members and Irish dairy farming families,” said Ornua Group CFO Donal Buggy.
“Not only does the EUR 580 million facility strengthen our capital structure, it also provides increased working capital support to our members and ultimately the dairy community across Ireland,” he said. he adds.
“We are very pleased that the transaction has been oversubscribed again – a clear indicator of the continued support of our banking partners to Ornua’s ambitious growth strategy,” he said.
Ornua, the state’s largest dairy exporter, recently acquired the US cheese company Whitehall Specialties, doubling its presence in the US cheese ingredients market.
The group aims to take Kerrygold’s sales to € 2 billion by 2025, mainly by gaining more market share in the United States, where it is now the No.2 butter brand.
Kerrygold became the first Irish food brand to exceed € 1 billion in annual sales in 2018.
Ornua saw its turnover increase by 1% to 2.34 billion euros in the 12 months ending at the end of December last year.