Milkiland attracts USD 100 mln syndicate loan

Milkiland (MLK PW) signed a USD 100 mln loan agreement with a syndicate of three international banks, the company reported on Friday. Milkiland plans to use USD 35 mln of the proceeds to repay existing loans, while the rest will be used for working capital and acquisitions. The loan can be utilized in parts during an availability period of nine months; the facility matures in four years.

Yegor Samusenko: We believe that Milkiland, following the attraction of this debt, will be active on the acquisition front, most likely in cheese production. The timing for acquisitions is good for long-term value building, in our view. With milk processing margins hit by cost pressure last year and with access to financing limited in the CIS, non-efficient players are being forced to exit the business at low multiples.