Scandi Standard has agreed with a bank syndicate the broad terms and conditions for a loan linked to sustainability.
With details still to be agreed, the proposed five-year loan is for around 3.2 billion Swedish krona (SEK; US$296 million).
The banking syndicate comprises four partners, namely ABN Amro, Bank of Ireland Group plc, DNB of Norway, and Rabobank.
“We are very pleased by the strong support from our new bank group,” said CEO of Scandi Standard, Jonas Tunestål. “The new five-year financing provides us with the necessary financial flexibility to realize the organic potential set forth in our financial targets, and to take an active part as a consolidator in existing and new markets.”
As currently agreed, the overall loan comprises three elements: a SEK1.0-billion multicurrency term loan facility, a SEK1.1-billion multicurrency revolving credit facility, and a EUR95-million single currency revolving credit facility.
In addition, there is an option to raise the loan by up to a further SEK1.5 billion (or equivalent in other currencies), subject to the banks’ approval.
Among the purposes of the loan is re-financing of Scandi Standard’s existing bank financing. Furthermore, the company says, it will “secure a robust, flexible, and long-term financing tailored to match the group's ambitions for organic and strategic growth.”
Final details of the agreement are under discussion between Scandi Standard and the banking partners.
More on Scandi Standard
Producing around 178 million birds per year, Scandi Standard ranks among the largest poultry companies in Europe, according to WATTPoultry.com’s Top Poultry Companies survey.
Based in Sweden, Scandi Standard also manufactures, markets, and sells a range of foods based on chicken also in other Nordic countries (Denmark, Finland, and Norway) and the Republic of Ireland. It is also has a table egg business in Norway.
For its last full financial year, the company reported net sales of more than SEK13.04 billion, and adjusted EBIT of SEK457 million. These figures represented year-on-year increases of 4% and 57%, respectively.
Year-on-year improvements in operating income and margins were highlighted by Tunestål on the recent release of the company’s second-quarter and first-half fiscal results.
