Quorn Foods secures £123m debt facility
Chief operating officer James Harvey said the facility would support the next phase of Quorn’s expansion, following a period of three years of significant growth.
Deloitte’s debt and capital advisory team assessed the finance options available to the manufacturer.
“Quorn is a fantastically well-known brand and a global market leader, so we received strong interest from both banks and alternative lenders in Europe and Asia, where the parent company is headquartered,” said Robert Connold from the corporate finance debt advisory team at Deloitte.
Five-year term
The debt facility has a tenure of five years and comprises a term loan facility of £113m and a £10m revolving credit facility.
“Having been out of the spotlight of the financial community since our sale in 2015 to the present owners, we were unsure of our options and terms,” added Harvey.
“However, over-taking Kellogg’s-owned Morning Star Farms to become the global brand leader last year, combined with the strength of our brand across multiple markets, we were highly valued by Citi and the banks… such that the deal was several times oversubscribed.”
Overwhelming response
Coordinating mandated lead arranger of the facility, Citi Corporate and Investment Banking, said the inaugural syndicated loan financing received overwhelming response from banks across Europe and Asia, including relationship banks of Quorn’s parent company Monde Nissin Corp.
“We believe the successful cross-border financing represents global recognition of the Quorn brand and paves the way for Quorn Foods’ continued growth and expansion across the global meat-substitute market.” added Vikram Singh of Citi.
Meanwhile, last month, a stray chicken nugget found in a pack of Quorn Foods’ sausages sparked an investigation at the factory producing the meat-free manufacturer’s products.
Quorn was contacted on 4 February 2019, after a consumer claimed to have found the nugget in his pack of meat-free cocktail sausages.
