Nomad Foods announced on April 29 that it has repriced its existing US Dollar denominated Term Loan B of $693 million principal. The closing of the repricing of the Term Loan is expected to occur on or before May 7, 2024, subject to customary closing conditions. Following the closing, the margin on the loan will be reduced by 50 basis points to SOFR + 250 basis points, which is expected to result in approximately $3.5 million of annual cash savings. There are no changes to the maturity of the Term Loan as a result of this repricing.
Headquartered in Feltham, England, Nomad Foods is regarded as Europe’s leading marketer of branded frozen food products. ranging from vegetables and fish to pizza, ready meals and more. Its portfolio includes household names such as Birds Eye, Goodfellas, Findus, iglo, Ledo and Frikom.
“The successful execution of this attractive transaction underscores our lenders’ increasing confidence in our strong operating performance and attractive outlook as we continue to execute our growth strategy. The cash interest savings from the repricing will further enhance our financial flexibility and support our continued growth initiatives,” said Samy Zekhout, Nomad Foods’ chief financial officer.
“We are pleased with the results of the repricing, building upon the successful repricing of our EUR denominated Term Loan in February,” said Noam Gottesman, the company’s co-chairman and founder. “This latest transaction underscores our financial strength and our proactive financial management as we are well-positioned to pursue our strategic objectives and deliver attractive financial returns.”
Meanwhile, on April 30 the company declared a quarterly cash dividend of $0.15 per issued and outstanding ordinary share. It will be payable on May 28, 2024 to shareholders of record as of the close of business on May 9, 2024.
