Demand lifts Glanbia loans 50pc beyond target
GLANBIA has raised more than 50pc more in bank loans than it had planned, amid strong demand for its business.
Last year the company said it had made arrangements to extend the maturity on some €320m worth of loans from this July to January 2018. Now, however, that figure has ballooned to €470m on the back of strong lender demand.
The company signed separate bilateral facilities with eight banks under a common loan agreement with identical terms. Allied Irish Banks, Bank of Ireland, Barclays, BNP Paribas, Citigroup, Danske Bank, Rabobank and Ulster Bank all took part in the facility, which is set to expire on January 2, 2018.
Glanbia said in November that its full-year adjusted earnings per share growth for 2012 would be at the upper end of forecasts. It is also in talks with Wexford Creamery about extending a partnership that sees Wexford provide various milk products to Glanbia.
Glanbia also has $325m (€243m) of private-placement debt due in 2021 and €51m of cumulative redeemable preference shares maturing in July 2014, giving it total debt facilities of €763m.
The share was off 0.95pc at €8.35 in Dublin, but the stock is up more than 72pc in the past year. (Additional reporting by Bloomberg)