Goodman Fielder, the Australia-based food group, has raised A$100m (US$70m) from its lenders amid speculation about the company’s financial position.
The company said it had raised the finance from a loan facility with the Commonwealth Bank of Australia. The loan replaces a A$120m facility that is due to expire next month.
Goodman plans to raise a further A$30m through its “dividend reinvestment plan”, it said on Friday (20 March).
Earlier this month, Goodman MD Peter Margin was forced to insist the company was “comfortably” within its lending agreements after local reports said the business was under financial pressure.
Margin said the company’s new lending agreement was “evidence of the company’s sound financial position”.
“We are very conservatively geared with debt to [debt+equity] of 31% and an interest cover of more than four times. This is a very solid position in the current difficult economic environment and I’m sure that our conservative debt position plus our strong cash generation performance was a major factor here,” Margin said.
“We remain comfortably within our banking covenants and in the last 12 months we have now refinanced A$870m of debt.”
The company is in the process of a review of its business and there have been rumours it could sell assets including its dairy operations.
Goodman has so far remained tight-lipped on whether any businesses would be sold.
A spokesman for the company told just-food earlier this month that “all options are being considered” and said the company is aiming to complete its review ahead of its AGM in November.
