Findus Group and its bankers have agreed a major restructuring deal comprising a GBP220m (US$355m) cash injection for the troubled UK frozen seafood firm.
Findus, owner of the Young’s Seafood brand, said the refinancing will both “strengthen” its balance sheet and give the company “an appropriate capital structure from which to grow and develop”.
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An investor group of companies including Lion Capital, Highbridge Capital, JP Morgan and Northwest Mutual have fronted the cash, of which GBP125m will go to repay senior debt and GBP25m to be retained as cash. An additional credit facility of GBP70m will also be injected into the venture.
Findus was forced into restructuring negotiations with its banks in June after its debts piled up. The company was bought by Lion in 2008 in a GBP1.1bn deal backed by around GBP700m of loans, but earlier this year the company had to ask its lenders to waive a fourth-quarter covenant on the GBP700m debt.
“With the business stable, fundamental growth drivers in each business, a new capital structure and very supportive stakeholders we can go forward with confidence,” said Findus CEO Chris Britton. “We can be excited for the future.”
Private equity firm TriPointe Capital Partners will join the investor group on the board to provide “key governance interface”, Findus said. Dale Morrison of US private equity house TriPointe Capital Partners will become non-executive chairman.
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