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Refresco successfully closed its senior secured notes offering

Refresco, the leading European private label juices and soft drinks producer, with headquarters in Rotterdam, successfully closed its senior secured notes offering today. The notes total an amount of €660 million. Of this amount €360 million is fixed (7NC3) at 7.375% and €300 million floating (7NC1) at 3month EURIBOR + 400bps. The notes are due in 2018.

The proceeds of the issuance will be used to refinance in full the Company’s existing credit facilities totaling €618 million and for general corporate purposes. The notes were placed with European as well as US institutional investors. Refresco decided to issue the bonds in order to optimize its capital structure in the current favorable market circumstances.

In addition Refresco has entered into a €75 million revolving credit facility with ABN Amro, BNP Paribas, Credit Suisse, Deutsche Bank, ING and Société Générale, with Rabobank as facility agent. In 2010, Refresco generated revenues of €1,224 million and a normalized EBITDA of €125 million. These figures exclude recent acquisitions.

Over the last 10 years, Refresco has built a pan-European platform of 26 production sites in 9 countries, manufacturing over 5.4 billion liters of non-alcoholic beverages per year. The Company is dedicated to providing European retailers with Private Label products and contract manufacturing for A-brands in the juices and soft drinks category.

After having acquired and fully integrated Soft Drinks International (Germany) in 2010 and having recently closed the acquisition of Spumador (Italy), Refresco, in the coming period, will put emphasis on organic growth and further integration and optimization of its operations.

Aart Duijzer, CFO: 
“Our first senior secured notes offering has turned out to be a success. All of our targets were exceeded. We have been able to take down our interest cost considerably for the coming years. Also, we have been able to leverage the window of opportunity in the financial markets, thus securing our financing for the coming 7 years. All of our relationship banks have been supportive in the process and will stay with us in the revolving credit facility.”

Hans Roelofs, CEO: 
“For Refresco this is a real step change. The success of the senior secured notes offering shows the trust and belief that institutional investors have in Refresco and its business model and shareholders. We now have added a new dimension by entering the capital markets arena.”

Prior to the issuance of the senior secured notes, Refresco received a corporate and senior secured rating from Standard & Poors of BB- and of Moody’s of B1. Deutsche Bank was the lead book runner in this transaction, together with Credit Suisse. Refresco was advised by North Sea Partners and Allen & Overy.

Further information

Tel: +354 591 4400