FrieslandCampina places 500 million dollar private loan in the United States

30 August 2012

FrieslandCampina has succeeded in acquiring long-term financing of 500 million dollar (394 million euro) through the placement of private senior notes with institutional investors in the United States. These senior notes have terms of between five and fifteen years.

Kees Gielen, CFO of Royal FrieslandCampina: “Despite it having proven difficult for many companies, FrieslandCampina has once again succeeded in borrowing the money needed to achieve its growth ambition. The fact that FrieslandCampina has previously attracted loan capital via the USPP market – the American private placements market – means the company is not ‘unknown’. American institutional investors, primarily large life insurance companies and pension funds, are very happy to invest in it long-term. They are very positive about FrieslandCampina’s strong international position in the dairy sector. They also have faith in our long-term route2020 strategy, our solid financial basis and the way in which we, as a company, have organised the entire chain, from grass to glass.”

Acquisitions
The borrowed funds will be used for, among other purposes, financing acquisitions, such as the acquisition of Alaska Milk Corporation in the Philippines earlier this year. FrieslandCampina had already borrowed amounts of 308 million dollar and 25 million euro via institutional investors.

Different groups of lenders
FrieslandCampina raises loans from different groups of lenders (member dairy farmers, banks and investors). The major portion of the loan capital has been borrowed from financial institutions in and outside the Netherlands. The major portion of the bank loans comprises a committed credit facility amounting to 1 billion euro and with a term to the end of August 2015.

FrieslandCampina was supported in this transaction by ING and Rabobank.