ARYZTA, THE company created from the merger of food group IAWS with Swiss company Hiestand, will have access to about €1.5 billion in funding once it launches next month.
The food group will be financed through three principal facilities when the merger is finalised on August 21st.
Last month, IAWS agreed a €795 million revolving multi-currency five-year loan facility.
The group will also have access to a senior note facility taken out by IAWS in June 2007 that provides a total of $450 million (€282 million) in term debt.
In addition, the group will have a €450 million facility that was entered into by IAWS's agri-nutrition business Origin in January of this year.
This facility will provide funding in the form of term debt, cash advances, letters of credit and bank guarantees.
According to Aryzta's prospectus, interest on the €795 million facility is payable on the aggregate of (i) Euribor or Libor (as applicable), (ii) the margin, which is initially set at 0.60 per cent, and (iii) costs associated with the lender complying with ECB requirements.
Other fees also apply, including an arrangement fee and commitment fee.
The facility is being offered by a range of banks. Bank of Ireland is lead arranger and security agent, while Bank of America Securities Ltd and Ulster Bank are also lead arrangers.
The other banks involved in the deal are BoA Netherlands Cooperatieve UA, BNP Paribas - Dublin branch, Barclays Bank Ireland, Credit Suisse, National Irish Bank and Rabobank Ireland.
The prospectus also clarified IAWS Group's profit forecast, revealing that the directors of IAWS now believe that it will achieve adjusted earnings for the year ended July 31st, 2008, of not less than €138.5 million.
