Inflexion completes £5m cheese refinancing(2)

Despite the ongoing problems in the debt markets, Inflexion Private Equity has successfully refinanced the senior debt of the UK-based Ilchester Cheese Company at 2.5 times EBITDA.

Inflexion Private Equity has completed the £5 million (€7 million; $10 million) refinancing of the Ilchester Cheese Company

The senior debt is 2.5 times the company’s EBITDA, according to a company spokesperson. However, the exact structure of the debt was not disclosed.

The company has also had a working capital facility provided by Lloyds TSB alongside the refinancing.

Inflexion originally bought the cheese manufacturer in a management buyout in December 2004. Since then the firm has increased capital expenditure by 70 percent.

John Hartz, managing partner and non-executive chairman of Ilchester said: “This recapitalisation provides an excellent supportive package for the company’s future growth plans, lowers its cost of capital and provides some early return for our investors.”

The refinancing comes as problems in the credit markets has made debt of all types more expensive. This has led to high-profile postponements of debt syndications including the £9 billion debt issue of Alliance Boots. Banks are re-flexing borrowing terms for small and large transactions, according to market sources.