HKFoods to issue 90 million euro in notes and initiates tender offer for 2027 debt

HKFoods is preparing to issue new floating-rate senior secured notes with a nominal value of 90 million euros. Concurrent with this issuance, the company has announced a tender offer for its existing notes maturing in June 2027. The move is intended to proactively manage upcoming debt repayments and extend the company's average debt maturity profile.

In tandem with the bond issuance, the company has secured a 92 million euro bank financing arrangement with Danske Bank, Nordea, and OP Corporate Bank. This facility comprises a 20 million euro three-year term loan and a 72 million euro revolving credit facility, with an option to extend the latter by two years. The new financing is subject to financial covenants, including a maximum leverage ratio of 3.25x net debt to EBITDA.

The tender offer is priced at 103.9 percent of the nominal value of the notes. The offer period concludes on September 14, 2026, with the final results expected by the end of the month. The completion of the tender offer remains subject to the successful pricing and issuance of the new notes.