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Bakkavor in key refinancing deal

By Mike Stones+

Last updated on 01-Apr-2015 at 12:12 GMT2015-04-01T12:12:03Z

Bakkavor boss Agust Gudmundsson
Bakkavor boss Agust Gudmundsson

Bakkavor has completed a refinancing deal to fund the early repayment of its £140M debt.

The firm negotiated a rise in its banking facility from £80M to £220M and extended the maturity date from October 2016 to February 2018.

The extra funds will be used for the early repayment of £140M of its existing 8.25% senior secured notes due in 2018, resulting in “significant interest savings for the group”, it said.

Lenders and investors

The firm’s chief financial officer Peter Gates said: “This recognises the excellent progress made to the financial strength of this business over recent years and I would like to thank our lenders and investors for their ongoing support and commitment to the group.”

In February Bakkavor reported UK full­ year revenue growth of 3.8%, from £1.46bn to £1.52bn in the 52 weeks to December 27.

Adjusted earnings before interest, tax, depreciation and amortisation climbed by 8%, from £104.1M to £112.9M.

Bakkavor boss Agust Gudmundsson said the business had made good progress in a difficult trading environment.