Fonterra's strategy attracts investors
million (€145m) in a private placement of long-term debt to US
Dairy multinational Fonterra Co-operative Group has raised US$165 million (€145m) in a private placement of long-term debt to US institutional investors. The issue of 12-year senior, unsubordinated notes, maturing August 2015, closed yesterday.
Fonterra chief financial officer Graham Stuart said the placement was more than four times oversubscribed, and was accepted by investors on very favourable terms. As a result of the strong investor demand the issue was increased from US$125 million
"The success of the placement reflects the confidence of overseas investors in Fonterra's business strategy and outlook," he said. "This issue completes the extension of our debt maturity profile following the formation of Fonterra. We have now reduced our reliance on short-term borrowing to a more prudent and conservative mix of medium and long-term borrowing."The placement was managed by Deutsche Bank.
Fonterra is the largest dairy ingredients company in the world. It collects milk from 13,000 suppliers and manufactures and packages more than 1,000 products. It also operates a supply chain linking production plants in New Zealand and abroad.