Food and Beverage Business
Finance

Tate & Lyle to Secure $588 Million via Debt Offering

Tate & Lyle to Secure $588 Million via Debt Offering $588 million, capital markets, corporate finance, debt offering, Finance, fundraising, investment, Tate & Lyle Food and Beverage Business

On 24 January, Tate & Lyle announced its plans to make notes valued at $300 million and €275 million (approximately £288 million) available in the private placement market.

The proceeds from this debt offering will partially refinance the bridge facility that Tate & Lyle utilized to complete its acquisition of CP Kelco in November 2024.

The transaction is expected to finalize on 12 March 2025, with the following notes to be issued: $85 million in 5.56% notes due 2030, $65 million in floating-rate notes due 2030, $40 million in floating-rate notes due 2032, $110 million in 5.84% notes due 2033, €140 million in 4.03% notes due 2035, and €135 million in 4.13% notes due 2037.

Sarah Kuijlaars, the Chief Financial Officer at Tate & Lyle, stated that the offering has garnered strong investor support and is “significantly oversubscribed.”

“The notes will enable us to refinance the bridge facility we used to part-finance the acquisition of CP Kelco, which represented an exciting step in the acceleration of our strategy to be a leading speciality food and beverage solutions business,” Kuijlaars added.

“The fixed-rate notes allow us to lock into attractive long-term interest rates, and the floating-rate notes are at a competitive margin over the Secured Overnight Financing Rate (SOFR), providing optionality for early repayment as we deleverage over time. Together with our existing debt, the new notes achieve our desired fixed/floating mix and extend our debt maturity profile.”

Julian Wild, Corporate Finance Director at law firm Rollits, noted that it is common for firms completing acquisitions to rely on short-term bridging finance, as Tate & Lyle has done in this case, before refinancing with more favorable terms.

“That sort of short-term bridging finance is expensive, so acquirers move quickly to replace it with longer-term funding on more attractive terms,” he continued.

“This is clearly what Tate & Lyle has accomplished, and the amount raised has also provided them with the headroom to pursue additional activities.”

Related posts

Unilever Ice Cream Explores Listing Opportunities

FAB Team

Hatsun Agro Aims for Market Growth Alongside Milk Mantra Dairy

FAB Team

Tiger Brands to Divest $240 Million Stake in Empresas Carozzi

FAB Team