Nomad Foods Reprices EUR130M Term Loan, Cuts Interest Costs by 75bps
Ticker: NOMD · Form: 6-K · Filed: Feb 5, 2024 · CIK: 1651717
| Field | Detail |
|---|---|
| Company | Nomad Foods LTD (NOMD) |
| Form Type | 6-K |
| Filed Date | Feb 5, 2024 |
| Risk Level | low |
| Pages | 2 |
| Reading Time | 2 min |
| Sentiment | bullish |
Complexity: simple
Sentiment: bullish
Topics: debt-reprice, cost-reduction, loan-amendment
TL;DR
**Nomad Foods just cut its loan interest rate, saving money and boosting profits.**
AI Summary
On February 2, 2024, Nomad Foods Limited successfully repriced its existing EUR 130 million Term Loan B, due in 2029, reducing the interest rate margin by 75 basis points. This amendment to their Senior Facilities Agreement, originally from July 3, 2014, will lower the company's borrowing costs. For investors, this means Nomad Foods will likely have improved profitability due to reduced interest expenses, potentially boosting the stock's appeal.
Why It Matters
This repricing directly lowers Nomad Foods' interest expenses, which can lead to higher net income and improved cash flow, making the company more financially efficient.
Risk Assessment
Risk Level: low — This filing indicates a positive financial adjustment for the company, reducing its debt servicing costs, which is generally a low-risk, beneficial event.
Analyst Insight
A smart investor would view this as a positive sign of prudent financial management, potentially leading to improved earnings per share. It might be worth reviewing Nomad Foods' upcoming earnings reports for the impact of these reduced interest costs.
Key Numbers
- EUR 130 million — Term Loan B principal (the amount of debt that had its interest rate margin reduced)
- 75 basis points — Margin reduction (the amount by which the interest rate margin was lowered, directly impacting interest expenses)
- 2029 — Term Loan B due date (the maturity year of the loan benefiting from the repricing)
Key Players & Entities
- Nomad Foods Limited (company) — the company repricing its senior secured term loan
- Citibank Europe Plc, UK Branch (company) — security agent and agent for the finance parties in the amendment
- EUR 130 million (dollar_amount) — principal amount of the Term Loan B that was repriced
- February 2, 2024 (date) — date the Amendment Agreement was entered into and the repricing closed
- 75 basis points (dollar_amount) — reduction in the margin on the Term Loan B
Forward-Looking Statements
- Nomad Foods' net interest expense will decrease in future financial reports. (Nomad Foods Limited) — high confidence, target: Q1 2024 earnings report
- The company's free cash flow will see a slight improvement due to lower debt servicing costs. (Nomad Foods Limited) — medium confidence, target: Next 12 months
FAQ
What specific financial instrument was repriced by Nomad Foods Limited?
Nomad Foods Limited repriced its existing EUR denominated Term Loan B of EUR 130 million principal, which is due in 2029.
By how much was the interest rate margin reduced on the Term Loan B?
The margin on the Term Loan B was reduced by 75 basis points as a result of the Amendment Agreement.
When did the repricing of the Senior Secured Term Loan officially close?
The repricing officially closed on February 2, 2024, the same day the Amendment Agreement was entered into.
Which entity acted as the security agent and agent for the finance parties in this Amendment Agreement?
Citibank Europe Plc, UK Branch acted as the security agent and agent on behalf of certain other finance parties in the Amendment Agreement.
What is the original date of the Senior Facilities Agreement that was amended?
The Senior Facilities Agreement was originally dated July 3, 2014, and has been amended and restated multiple times since.
Filing Stats: 556 words · 2 min read · ~2 pages · Grade level 15 · Accepted 2024-02-05 16:30:31
Filing Documents
- nomd-20240205x6kxrepricing.htm (6-K) — 18KB
- amendmentagreement-02feb.htm (EX-99.1) — 23KB
- ex992pressrelease-repricin.htm (EX-99.2) — 8KB
- amendmentagreement-02feb001.jpg (GRAPHIC) — 114KB
- amendmentagreement-02feb002.jpg (GRAPHIC) — 81KB
- amendmentagreement-02feb003.jpg (GRAPHIC) — 170KB
- amendmentagreement-02feb004.jpg (GRAPHIC) — 174KB
- amendmentagreement-02feb005.jpg (GRAPHIC) — 221KB
- amendmentagreement-02feb006.jpg (GRAPHIC) — 172KB
- amendmentagreement-02feb007.jpg (GRAPHIC) — 117KB
- amendmentagreement-02feb008.jpg (GRAPHIC) — 168KB
- amendmentagreement-02feb009.jpg (GRAPHIC) — 73KB
- amendmentagreement-02feb010.jpg (GRAPHIC) — 39KB
- amendmentagreement-02feb011.jpg (GRAPHIC) — 35KB
- nomadlogoa15a.jpg (GRAPHIC) — 7KB
- 0001651717-24-000008.txt ( ) — 1942KB
From the Filing
Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________ FORM 6-K _______________________________________________ REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 _______________________________________________ For the month of February 2024 Commission File Number 001-37669 _______________________________________________ Nomad Foods Limited (Translation of registrant's name in English) _______________________________________________ No. 1 New Square Bedfont Lakes Business Park Feltham, Middlesex TW14 8HA + (44) 208 918 3200 (Address of Principal Executive Offices) _______________________________________________ Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F o Repricing of Senior Secured Term Loan On February 2, 2024, Nomad Foods Limited (the "Company") entered into an Amendment Agreement by and among the Company, and Citibank Europe Plc, UK Branch as security agent and agent on behalf of certain other finance parties thereto (the "Amendment Agreement") relating to that certain Senior Facilities Agreement originally dated July 3, 2014 (as amended and restated from time to time, including pursuant to amendment and restatement agreements dated May 3, 2017, June 22, 2021, November 8, 2022 and September 15, 2023, the "Senior Facilities Agreement"). Pursuant to the Amendment Agreement, as of the closing of the repricing, which occurred on February 2, 2024, the Senior Facilities Agreement has been amended (as amended the "Amended Senior Facilities Agreement") to reduce the margin on the Company's existing EUR denominated Term Loan B of EUR 130 million principal due 2029 (the "Term Loan") by 75 basis points. The description of the Amended Senior Facilities Agreement contained herein is not intended to be complete and is qualified in its entirety by reference to the full text of the Amended Senior Facilities Agreement, which is attached hereto as Exhibit 99.1. On February 5, 2024, the Company issued a press release announcing the repricing of the Term Loan. A copy of the press release is furnished as Exhibit 99.2 to this Report on Form 6-K. This Report on Form 6-K (other than Exhibit 99.2) is hereby incorporated by reference into the registration statements on (i) Form S-8 filed with the Securities and Exchange Commission (the "Commission") on May 3, 2016 (File No. 333-211095), (ii) Form F-3, initially filed with the Commission on March 30, 2017 and declared effective on May 2, 2017 (File No. 333-217044) and (iii) Form F-3ASR filed with the Commission on March 1, 2023, which was automatically effective upon filing with the Commission (File No. 333-270190). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NOMAD FOODS LIMITED By s Samy Zekhout Name Samy Zekhout Title Chief Financial Officer Dated February 5, 2024 Exhibit Index Exhibit Number Exhibit Title 99.1 Amendment Agreement by and among the Company and Citibank Europe Plc, UK Branch as agent on behalf of certain other finance parties thereto relating to that certain Senior Facilities Agreement originally dated July 3, 2014 (as amended and restated from time to time, including pursuant to amendment and restatement agreements dated May 3, 2017, June 22, 2021, November 8, 2022 and September 15, 2023) 99.2 Press Release issued by Nomad Foods Limited on February 5, 2024 relating to the repricing of its existing USD term loan.