IGLO Group, the maker of Birds Eye frozen foods owned by private equity firm Permira, is set to restructure its finances by extending its loan maturity and issuing more debt to boost the company’s growth potential.
Permira is set to get the thumbs up from its lenders to extend the maturity of €1.4bn (£1.12bn) of senior debt from 2014 and 2015 to 2017 as it seeks to extend the time horizon of its investment in Iglo.
Iglo is also set to issue €250m of new senior debt as it seeks to capitalise on the company’s current low indebtedness. The firm is also planning to pass back €300m to its shareholders.
A source said there was good support from lenders for the three-pronged proposal, as the firm seeks to organise its capital structure in case it decided to sell the business.
Permira shelved plans earlier this year to sell Iglo after bidders failed to meet the asking price it was seeking.