has signed a $120 million finance agreement with GE Commercial Finance to reduce debt and support the company’s recent restructure.
Private equity firm, Anchorage Capital Partners, has subscribed for $35.5 million of new equity in Golden Circle.
GE has provided the company with a new financial structure, eliminating the expensive convertible notes it previously held and giving the company headroom to grow.
Golden Circle’s entire debt requirement is now bundled together, making it easier to manage and providing significant interest savings.
GE looked beyond just numbers, instead analysing the plans Golden Circle had to rationalise and grow the business and structured a loan to suit that strategy.
Established in 1947, Golden Circle is a publicly owned, unlisted company. It manufactures over 500 products including shelf stable fruit and vegetables, fruit juices and drinks, cordials, jams and baby food.
Known for its tinned pineapple, Golden Circle processes more than 180,000 tonnes of fruit and vegetables each year, most of which are supplied by Queensland-based farmers.
Over the past four years, Golden Circle has faced a number of challenges, largely driven by rising input costs.
In mid-2007, the company embarked upon a rationalisation program to improve profitability and plan for growth.
Part of this strategy included selling off a plot of unproductive land, a move Golden Circle’s previous financier did not support.