Wessanen to create more headroom in main credit facility

Utrecht, July 23, 2009

The Executive Board of Royal Wessanen nv announces that it has reached agreement with its four syndicate banks on significant amendments to its €250 million credit facility. Wessanen announced in April of this year that it will focus on growing its presence in the European organic and specialty food markets and start an investigation into divesting its North American businesses. The amendments provide Wessanen with more headroom in leverage (Net debt / EBITDAEEBITDAE: Earnings before Interest, Tax, Depreciation, Amortization and Exceptional Items) until it has divested these businesses.

Under the original facility, total net debt was allowed to exceed 3.0 times consolidated EBITDAE for a limited period only and not allowed to exceed 3.5 times consolidated EBITDAE. At March 31 2009, Wessanen reported a net debt to EBITDAE ratio of 3.2.

Under the amended facility, prior to divesting its North American businesses, Wessanen must ensure that in 2009 total net debt does not exceed 4.0 times consolidated EBITDAE and does not exceed 3.5 times consolidated EBITDAE in the first half of 2010. After divesting the majority of its North American businesses and in any event no later than June 30, 2010, total net debt is not allowed to exceed 3 times consolidated EBITDAE. The first €150 million of proceeds from divestments will be applied to a mandatory redemption of facility loans and a reduction of the credit facility. The remaining €100 million of the credit facility is available until the original maturity in February 2012.

The interest margin on the facility is increased to 150 - 300 basis points over Euribor / Libor based on a leverage grid (Net debt / EBITDAE).

We anticipate that financial expense, including all related amendment and advisory fees, will increase with approximately €5 million during the remainder of 2009.

Executive Board Royal Wessanen nv
090723_Persbericht_amendment_CF_ENG.pdf (20 Kb)
090723_Persbericht_amendment_CF_NL.pdf (22 Kb)

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