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Capital and Legal Structure 06/06/22

Intro & Background 06/06/22

Margin & Forecast 06/06/22

Investment Rationale 06/06/22
Flora have appointed Giangaddo Prati as CFO to replace Florence Naviner, who will retire in March 2026 after the closure of the
Please find our updated analysis on Flora post its Q3 results here.
We have had an excellent history with Flora, having invested in the previous Flora “sub” bonds in August and December 2022 at
Flora, Flora’s Q3 results demonstrated slightly stronger resilience than anticipated, with volumes declining by only 0.9%. Gross profit contracted by
Please find our updated analysis on Flora here.
We have had an excellent history with Flora, having invested in the previous Flora “sub” bonds in August and December 2022 at
Flora has extended its revolving credit facility until October 2030. This is subject to the Senior Term Facilities also being extended to
Flora has priced its new €400 million senior unsecured bonds at 8.625%. The proceeds will be used primarily to redeem the remaining €300 million of
Flora is holding a roadshow later today. Details are emerging, but we expect it will be to refinance its outstanding sub bonds.
Flora released its Q1 results yesterday, which came in slightly below expectations. There were a few mitigating factors, including the
As tariffs continue to influence market dynamics, we've taken a comprehensive look across our coverage to highlight the names most likely to be affected. For full transparency, we've also included those that remain unaffected—it's just as important to understand where the impact isn't being felt.
The idea here is
The numbers continue to improve although deleveraging has slowed. Investors don’t appear to care, with several balance sheet refinancings/taps reducing the
Flora has launched a process to reprice its $ Term Loan which currently pays S + 425bps. As part of the transaction, Flora has released some
Flora’s reward for issuing more Senior Secured paper to take out subordinated paper was Moody's rating downgrade from B2 to B1, citing
Flora is tapping their 2029 notes with an additional €250m bonds, with Use of Proceeds used to redeem the 2026 $ and Euro bonds. The 2029 bonds
The Dutch plant-based food group released strong Q3 2024 results yesterday. The highlight of the quarter was positive volume growth for two of the
Formerly known as Upfield, the Dutch edible spreads business launched a €100 million add-on to its existing 6.875% senior secured notes at
Upfield reported its Q2 2024 financial results yesterday and followed up with a call. In general, the quarter was below our estimates (with the exception of margins) with the
In line with the sunny weather, the company decided to tap the strong primary market and launch a €400 million senior secured notes
The company reported Q1 2024 financial results yesterday and hosted a call with investors. Upfield missed our topline estimate as we expected growth in the single digit while
Reports in the press on a proposed sale of Upfield at US$ 10 billion to an Abu Dhabi sovereign wealth fund (ADQ) which were cancelled were beyond
Please see our updated model on Upfield post the Q4 2023 results here.
Q4 2023 results were broadly in line with our expectations and projections. More importantly, though, the company has been tracking if no
The company is launching further add-ons to their TLB. This doesn’t look transformative, but
Please find our updated analysis here.
Slowly but surely the Company and its private equity shareholder is extending the maturity of its capital structure to match the time needed to transition the
Upfield published their Q3 results last night, ahead of their conference call today. With price deflation in the spreadable market, sales were down 10%. Gross profit
Upfield has upsized its tap from earlier this week, in line with our previous comment. The new size is $215m fungible with the current Term
Upfield have launched a €100m tap to the previously extended facilities this morning. In July, 79% of the €2.4bn facility was extended to January 2028
Upfield are holding an investor call today at 1:30 UK time on an amend and extend of its €, $ and £ term loan tranches, with the aim to
Further press reports on lower food inflation, with the FT citing “softening” butter prices due to a reduction in dairy producers’ costs. In Germany, prices are
Upfield have partially extended its Bank Loan Facilities, the RCF to October 2027 and Polish Zloty Term Loan Facilities to January 2028. However, the
Please find our updated model here.
With just over 2yrs left until the maturity of the Term Loans, is it time for Upfield to focus its mind on refinancing? We commenced our analysis from
Please find our updated model here.
We took our initial 2.5% position in mid-August post-Q2 numbers at 62% and increased our position in December at 72% to 5% long. We are maintaining our position at the current 15% yield, and remain confident that further deleveraging is ahead.