RBS Acts as Sole Coordinator and Bookrunner on JFC USD 135 million Term Loan Facility
February 5, 2010
In December 2009, JFC successfully closed a USD135 million 3 year amortising term loan facility to refinance an existing syndicated loan facility. Despite the challenging syndication process, the deal managed to attract a group of 10 banks and met the client’s objective by successfully refinancing the existing facility with an extended amortisation profile
RBS acted as sole Coordinator/Bookrunner in the transaction and assisted the company in structuring the deal as well as reviewing and assisting to develop its financial model. RBS also played a critical role in the syndication process bringing the bank group together.
JFC Group (JFC) is a leading importer and distributor of fruit in Russia with a 35% market share in the banana market. JFC's businesses consist of production, logistics, pre-sale processing, distribution and trading with a network of warehouses, processing and storage centres and a fleet of refrigerated vehicles. In addition to Russia, JFC is also selling bananas in Europe and the Middle East
Given difficult industry conditions, high degree of dependence on short term borrowings and a recent downgrade to CCC, JFC was facing a significant liquidity problem. This problem was further exacerbated by the upcoming amortisation of the existing syndicated loan. When the company approached us for advice in July 2009, it had a serious risk of being pushed into restructuring.
RBS advised that in combination of a USD 40 million equity raising and a refinancing of its syndicated facility would be the best way to stabilise the company. We advised against EBRD involvement both for timing considerations and due to security requirement of the EBRD, which would negatively affect JFC’s operations and other debt facilities.
Company — JFC Group
Full nameJFC Group