The Fruit Farm Group The Fruit Farm Group The Fruit Farm Group

The Fruit Farm Group B.V. successfully closes a €60M notes offering

On December 10th, 2014 The Fruit Farm Group B.V. priced €60M 5.75% Senior Secured Notes due 2019.

The Sole Bookrunner was KBC Bank NV.

Application has been made to list the Notes on the Official List of the Luxemburg Stock Exchange and to admit the Notes for trading in the Euro MTF market thereof.

The shareholders of UNIVEG have created and funded with substantial equity a new legal entity called The Fruit Farm Group (“TFFG”). This entity has purchased a selection of UNIVEG’s farming and export units (*) that now will be able to grow and thrive at their own pace with their own financial means. 

The initial funding of TFFG consists of €35M of new cash equity, provided by UNIVEG’s current shareholders, the €60M Senior Secured Notes and a “kick-start” capex line provided by KBC Bank NV. Summarized, UNIVEG and The Fruit Farm Group have the same shareholders and different debt-holders.

This is a Win-Win transaction for UNIVEG and TFFG as it increases UNIVEG’s equity and reduces its debt and at the same time provides growth opportunities for TFFG to unlock its full potential.

This issuance is a unique and new-to-the-world financing instrument. Investors have been convinced by the value of the assets, the power of the “DIRECT connection between farming and markets” and the Group’s commitment towards sustainable agriculture and high social standards. We are convinced that this success may set a trend in the financing of horticultural and farming assets.

(*) Turkey, South Africa, Costa Rica, Brazil, Uruguay, Suriname