Media

12 March 2012

Premier Foods announces landmark re-financing package

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Premier Foods is pleased to announce that it has obtained unanimous consent from its banking syndicate, swap counterparties and pension schemes to the terms of a 4 ½ year re-financing package that will allow the company to execute its new growth strategies. The re-financing package is subject to the formalities of final documents being signed which are expected by the end of March.

Under the terms of the package, banking facilities of £1.2 billion have been extended from December 2013 to June 2016. Covenants have also been re-set to reflect the Group’s growth priorities of focusing investment behind eight Power Brands, strengthening its capabilities, reducing costs and divesting selected businesses. The total interest rate swap portfolio, including previously restructured swaps, will be restructured into an additional term loan of approximately £200 million which will have the effect of reducing the Group’s interest expense. Additionally, the Trustees of the Group’s pension schemes have agreed to defer deficit contribution payments until 2014.

The Group reiterates that it expects overall financial results for 2011, both reported and underlying, to be at the lower end of market expectations and that its current focus continues to be to stabilise the business and invest in its recovery and future growth.
  
Further details of the re-financing package and trading performance will be provided when the Group announces its 2011 Full Year results and details of its growth strategies, expected by the end of March.

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For further information, please contact:

Institutional investors and analysts:
Mark Moran, Chief Financial Officer                     +44 (0) 1727 815 850
Richard Godden, Head of Investor Relations        +44 (0) 1727 815 850

Media enquiries:
Lisa Attenborough, Director of Communications    +44 (0) 1727 815 850

Maitland                                                          +44 (0) 20 7379 5151
Tom Buchanan
Brian Hudspith
 
As Britain's largest food producer, Premier Foods is committed to being the 'Best in British Food’ - delivering the taste the British love, with food that's made in Britain by people who understand British consumers.  We supply a range of retail, wholesale, foodservice and other customers with some of Britain's best loved brands, including Ambrosia, Batchelor’s, Bisto, Hovis, Loyd Grossman, Mr.Kipling, Oxo and Sharwood’s . The company employs around 12,000 people operating from 43 sites from Plymouth to Glasgow.

 


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