IFCO refinances Term Loan B as first Amend-and-Extend Transaction to price at par.
Pullach/Munich, Germany, March 21, 2024: IFCO, the world’s leading provider of Reusable Packaging Containers (RPCs) for fresh food, has successfully refinanced the Term Loan B in an Amend and Extend transaction ahead of schedule. The volume has been increased to EUR 1,640 million and the Revolving Credit Facility to EUR 310 million. The transaction met with very high demand from institutional investors from both domestic and foreign markets. The previous loan was taken out in May 2019 after the joint acquisition of IFCO by Triton and ADIA.
The Term Loan B now has a term until 2029 and is equipped with an initially favorable interest margin of only 4.0 percent p.a. The highly attractive refinancing terms are also reflected in the waiver of an Original Issue Discount (OID), which has not been seen in Europe before. Almost 90% of existing lenders remained committed to IFCO; furthermore, the transaction has raised new funds of over EUR 500 million, with the order book being almost twice oversubscribed.
With the new loan, IFCO succeeds in expanding the financing framework for its planned further growth and takes advantage of the favorable market environment to extend the credit lines. The global operating provider of reusable packaging containers for the transportation of fresh food has already expanded strongly worldwide in recent years.
Demand for reusable packaging solutions continues to grow as companies increase focus on implementing sustainable solutions as part of their ESG commitments. IFCO RPCs enable companies to actively participate in the circular economy by replacing single-use packaging and significantly reducing CO2 emissions, solid waste, and food waste.
Always focused on the needs of its customers, IFCO is constantly developing new reusable packaging solutions. The company already offers a wide range of reusable packaging containers for the transportation of fresh fruits and vegetables, meat, fish, bakery products, or eggs. Recently, IFCO has expanded its offering to include a reusable plastic pallet specifically designed for RPC compatibility. This pallet is 25% lighter than conventional wooden pallets, significantly reducing transportation costs and associated carbon emissions.
“We have successfully used the favorable market environment to optimize our maturity profile at very attractive terms with the early refinancing. This enables us to further drive the growth of IFCO and continue to develop innovative, digital, and sustainable solutions for food transportation in the future. We look forward to supporting our customers in their commitment toward accelerating the shift to sustainable supply chains.”
"All three rating agencies view the transaction positively, thus confirming our financing strategy. Despite the higher loan volume, the ratings have not changed, and the outlooks remain stable," says Nils Ostendorf, IFCO Director Global Treasury.
"We, at Triton, believe that companies play a vital role in a more sustainable society. IFCO is a prime example of a company that promotes a circular economy. This very successful financial transaction is further evidence of the right portfolio strategy," says Martin Fikus, Investment Advisory Professional at Triton Partners.
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