Plukon
Refinancing and increase of its current financing facilities
- In October 2022 Avaxa was engaged by Plukon to assist in its refinancing process;
- Plukon is one of the leading players in the European poultry market, supplying a diverse range of chicken products and ready-to-eat meals to its food partners. With 30 locations across six countries and over 9,000 employees, Plukon strives to be the most innovative and knowledge-driven producer in Europe;
- The company is committed to producing sustainable food solutions that meet the needs of the future and has committed itself to set sustainability KPI’s to encourage its sustainability agenda which are also incorporated as sustainability component in the new financing agreement;
- Based on the Long-Term Strategic Plan of Plukon, Avaxa substantiated the new financing need which required an increase of the existing debt package. Furthermore, Avaxa performed a shadow credit rating analysis to benchmark existing terms & conditions against prevailing market circumstances, developed a preferred financing structure (including sufficient firepower for acquisitions) and syndication strategy;
- Based on the shadow credit analysis it was decided to aim at an unsecured financing, whereas thus far Plukon’s financing had been secured;
- An integral part of the refinancing was to ensure enough flexibility to incorporate alternative debt instruments in due course, including a EU Private Placement or Schuldschein;
- To further facilitate Plukon’s ambitious and active buy & build strategy, a 3-year unsecured Revolving Credit Facility of EUR 450m (with an Accordion Option and 2 extension options) was launched in the financing markets in Q4 2022, for which Avaxa approached a selected number of new and existing domestic as well as international lenders;
- The refinancing was successfully closed in April 2023, and was facilitated by a syndicate consisting of five Dutch and international lenders; and
- The new financing substantially increases operational and financial headroom and flexibility for Plukon, against significantly improved pricing.
