Nufarm Looks To Refinance Debt
2 December 2008 Amidst the global credit crisis, Australia-based Nufarm Ltd., is in talks to refinance US $389 million of debt. Lending costs have increased and access to debt has been reduced across the globe. Nufarm, which had 2008 operating profit of about $106 million, has not been as affected as many companies in other industries, as there’s still good demand for agricultural products. However, said Chief Executive Officer Doug Rathbone: “We’re fixing our lines of credit with more rigor and more attention than we’ve ever before. We’re looking to have it all further in advance than we would have if we weren’t in this sort of environment.”
Nufarm has $194.5 million of debt to roll over between July 2008 and the year’s end, and another $194.5 million due between January and July 2009, said spokesman Robert Reis, adding that the company may provide further details on its refinancing at its annual shareholder meeting next week.
Rathbone said Nufarm still expects to meet its target of as much as a 40% jump in operating profit in 2009. “There’s nothing we see that’s taking us away from that at this point of time,” Rathbone said. “We’re seeing great support from all the banks, probably solely because the story of agriculture is so good,” Rathbone said. “It’s all happening fine, it’s all coming together.”
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