Katjes Greenfood floats €40M bond at up to 8.5% to refinance debt
What's the deal? Katjesgreenfood has launched a new corporate bond targeting up to €40 million, carrying an annual interest rate between 7.75% and 8.50%. The five-year bond, structured under Norwegian law, is being offered publicly in Germany, Luxembourg, and Austria, with private placements in select European countries.
Where's the money going? The company primarily intends to use the proceeds to refinance existing bonds. It has also attached an exchange offer for its 2022/2027 bond and 2021/2026 subordinated loan, allowing 1:1 swaps with a cash settlement of €17.50.
Why now? The bond gives Katjes GreenfoodDealroom has a profile for this one. Try Dealroom → a way to roll over maturing debt before those obligations come due. It plans to list the new notes on the Frankfurt Stock Exchange and Oslo Stock Exchange within six months of issue.
What's the endgame? Katjes GreenfoodDealroom has a profile for this one. Try Dealroom → invests in the "Better-for-You" food segment, backing health-conscious brands. It is backed by the Katjes GroupDealroom has a profile for this one. Try Dealroom →, the German confectionery maker, and frames its strategy around shifting consumer preferences toward healthier products.
The signal: Turning to the bond market rather than equity, Katjes Greenfood is leaning on debt to keep funding growth in a food category where demand for healthier options continues to build. The coupon of up to 8.50% reflects the cost of that capital in the current rate environment.
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