Silver Fern Farms seeks funding replacement for US$53.4 million bonds

Meat processor Silver Fern Farms (SFF) is working on replacement funding for an existing NZ$75 million (US$53.4 million) of bonds.

The NZ$75 million tranche is due to mature in December and the meat processing co-operative is mulling options including a further bond issue or alternative funding from banks.

SFF had about NZ$184.5 million (US$131.56 million) of debt at August 31. It needs capital or further facilities to help pay debt that is rolling over and to continue its farm-pasture-to-customer-plate marketing strategy.

SFF's previous capital-raising plan ended with a splutter rather than a surge with farmer suppliers only ploughing in about NZ$22 million (US$15.68 million) of new equity, much less than originally envisaged.

Chief executive Keith Cooper did not specify any plans for SFF to tap "partners" or new shareholders for further funds.

Cooper said the SFF finance team was working through debt-related options including existing bank facilities.