Nufarm Ltd., a Melbourne-based maker of agricultural chemicals, signed a three-year term loan for A$625 million ($607 million) which pays banks a margin of about 250 basis points over benchmark rates, according to a person familiar with the matter.
Australia & New Zealand Banking Group Ltd., Credit Suisse Group AG, Deutsche Bank AG, Rabobank International, Mizuho Corporate Bank Ltd., UBS AG and UniCredit SpA organized the facility, according to a statement to the Australian stock exchange yesterday. Rabobank also provided a A$300 million securitization facility, another person familiar with the matter said on Nov. 16.
“The improved liquidity profile that results from the new bank facility will further assist Nufarm in the management of seasonal working capital demands,” Chief Executive Officer Doug Rathbone said in the Nov. 23 statement.
Proceeds will be used to refinance debt and the A$625 million loan was signed on Nov. 22, the person said today.