Croatia’s Fortenova Grupa, the successor company to Balkan food and retail giant Agrokor, issued €1.157bn in four-year bonds on September 6.
The bond sale is intended to refinance a loan, the Super-Priority Facility Agreement (SPFA), the group took out in 2017 to avoid bankruptcy. It was taken under state administration in April 2017 and restructuring deal was signed with creditors last year.
The new financing is structured as a four-year bond, with a 7.3% interest rate plus EURIBOR, with 1% floor, Fortenova said in a statement. The financing was led by HPS Investment Partners in cooperation with VTB Bank, one of the company’s major creditors.
The refinancing agreement envisages the interest rate to be successively reduced as the Fortenova Group will be reducing its leverage ratio, the statement added.
“By closing the new financing arrangement Fortenova Group has fully refinanced the SPFA loan and provided for its mid-term stability and long-term viability, growth and development,” commented Fortenova CEO Fabris Perusko.
“We would like to thank all shareholders who have recognised and supported the process that is in the interest of all stakeholders. Fortenova Group is now entering a new stage of operations focusing on profitability increase, efficiency improvements and value creation for all stakeholders.”
The Agrokor temporary creditors council approved the refinancing on September 4. The guarantee had support from representatives of Agrokor’s financial creditors, while representatives of its suppliers voted against.
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