Bakkavör has secured a new funding package to repay some of its debt and extend the maturity of existing debt.

The refinancing deal – which included a new £150m seven-year fixed rate bond – has enabled the ready-meal and fresh produce group to repay £18.1m of its existing debt. 

It has also allowed the company to extend the maturity of other bank facilities from June 2014 to October 2016.

Bakkavör nearly collapsed in the wake of the Icelandic banking crisis in 2008 and since then it has been hammering out deals with bondholders and shareholders to put the finances of the business back on track.

The company said the latest deal would strengthen its balance sheet.

“This affords us greater financial flexibility to execute our business strategy and deleverage the business through profit growth and strong cash flow,” said Bakkavör CEO Ágúst Gudmundsson (pictured).

Last month, Bakkavör won six gold medals and three silver at The Grocer’s Own Label Food & Drink Awards.

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