The RCF replaces the manufacturer’s existing £340m facility and a £45m term loan, extending its average maturity profile to close to four and a half years. The agreed facility has the option of two additional one-year extensions and includes a £100m accordion feature which provides further potential financing facilities.
According to the convenience foods producer, the new RCF also incorporates performance targets that are aligned with the firm’s long-term sustainability strategy.
The Corporate Finance Institute defines an RCF as a line of credit that allows the borrower to access the funds at any time, providing the business with added short-term flexibility.
The RCF is provided by Allied Irish Banks plc, Barclays Bank Plc, Rabobank Dublin, Danske Bank A/S, Irish Branch, HSBC Continental Europe, The Governor and Company of the Bank of Ireland.
Greencore will announce its full year results on 28 November 2023, having released a trading update last month (October 2023) that projected adjusted operating profits of between £74m and £76m for the year. This number is ahead of consensus market expectations.
RCF provides Greencore ‘new financial flexibility’
Dalton Philips, Greencore chief executive, said that the group was continuing to deliver on its goal to create a more efficient and stronger business that is able to serve the needs of its customers and consumers across the UK.
“This new facility provides us with significant new financial flexibility to deliver on our growth objectives while aligning our financing arrangements with our sustainability targets,” Philips explained.
Headquartered in Dublin, Ireland, Greencore supplies all of the major supermarkets in the UK, in addition to supply convenience and travel retail outlets, discounters, coffee shops, foodservice and other retailers.
The manufacturer employs 13,600 people across 16 manufacturing sites and 17 distribution centres in the UK. During FY22 it generated revenues of £1.7bn.
In other news, leading UK egg producer Noble Foods has appointed two new non-executive directors to its board.
