Nufarm successfully refinances working capital debt facilities

15 Nov 2022

Nufarm Limited (Nufarm, ASX:NUF) has entered into a five year A$800 million revolving Asset Based Lending credit facility (the ABL Facility) secured against trade receivables and inventory located in Australia, the United States and Canada. A smaller A$150 million Liquidity Facility with a two year term has also been established to sit alongside the ABL Facility to assist in the ongoing funding of Nufarm’s working capital requirements. The execution of the ABL Facility and the Liquidity Facility replace the existing A$500 million Securitised Trade Receivables Facility that had a 12 month term and the A$440 million Syndicated Bank Facility that had a customary term of three years.

Complementing the US$350 million Senior Unsecured Notes which were issued in January 2022 and mature in January 2030, the ABL Facility will deliver considerable benefits to Nufarm’s capital structure, transitioning Nufarm to a covenant-lite financing structure and significantly extending the duration of the Group’s debt maturity profile. An ABL facility provides a less restrictive and more flexible covenant regime.

Nufarm’s new working capital debt facilities are important components underpinning a flexible and durable capital structure that will provide greater financial resilience across operating cycles and varied underlying trading conditions. The extended term of the Group’s working capital debt facilities demonstrates confidence by relationship lenders in Nufarm’s strong balance sheet position, strategic direction and future growth aspirations.

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