Flora - comment

We had expected last week’s disclosure of preliminary results to be a precursor to discussions around extending the maturities of the senior secured bank debt. Instead, Flora announced overnight a €500m private placement of 7.5% senior secured notes, issued at par, with proceeds to be used to repay a portion of the existing senior secured bank facilities.

The new notes are issued under the same indenture as the existing 2029 notes and, in effect, allow the company to extend the maturity profile of its bank debt by approximately two years. While the structure differs from our initial expectations, the economic outcome is broadly consistent. As such, we are maintaining our position.

www.florafoodgroup.com/investor-relations-area/announcements#2025