Ornua has secured new five-year syndicated bank facilities of €610 million, replacing its existing €420 million syndicated bank facilities. The new facilities will extend to November 2022, and Ornua’s early refinancing of the existing facilities took advantage of positive bank market conditions.
The refinanced facilities comprise of two distinct parts. €260 million will be committed to a syndicated Revolving Credit Facility, which will fund Ornua’s own working capital requirements and its international growth strategy.
Another €350 million will be committed to a syndicated Reverse Invoice Discounting Facility to fund the working capital requirements of Ornua's members suppliers, Ireland’s dairy processors.
In addition, a further €100 million is available, if required over the five-year period, under the facilities by way of an uncommitted tranche of funding.
The participant Banks remain the same as under the previous facilities: Allied Irish Banks; Bank of America Merrill Lynch; Barclays; HSBC; Rabobank; Ulster Bank.
Growth Plans
Commenting on the refinancing, Donal Buggy, Group Finance Director, Ornua said, “The successful refinancing ensures that Ornua retains access to the banking liquidity it needs to continue implementing our strategic five-year growth plan ‘Ornua 2021’ following the removal of milk quotas in 2015, and delivering strong product price returns for Irish dairy farmers.
“Not only does it strengthen our capital structure, but it also provides continued working capital support to our member suppliers and ultimately the dairy community across Ireland.
"It is particularly pleasing that we have retained the same group of Irish and International banking partners, and we note that the deal was significantly over-subscribed demonstrating their continued support for Ornua and the Irish dairy industry.”
© 2017 - Checkout Magazine by Jenny Whelan
