What Milk Link's refinancing will mean for producers

摘要

Ok, so tell me about what you've done in terms of the financial restructuring. Milk Link and Milk Link Processing had a total borrowing facility of pound 67.5m, via a syndicate of banks lead by Rabobank and which included Barclays, HSBC and the Bank of Ireland. That facility was renewed just under two years ago when we bought into The Cheese Company. That financing was for a five-year term loan, due to be repaid by 2009. What we've done is to repay that loan and take out new facilities with Lloyds TSB which requires a lower annual debt repayment because the borrowings are secured on Milk Link's assets rather than on the cash flow of its members.