Aryzta lenders agree to amend banking facilities

Baking company announced earlier this week that it had agreed to change covenants

Aryzta entered a standby underwriting agreement with banks earlier this week. Photograph: Nick Bradshaw

Aryzta entered a standby underwriting agreement with banks earlier this week. Photograph: Nick Bradshaw

 

Troubled baking group Aryzta confirmed that its lenders had unanimously agreed to amend its banking facilities on Friday.

The Cuisine De France owner announced earlier this week that it had agreed new covenants with its lenders.

In a stock market announcement the Swiss-Irish food company said it had now signed “definitive documentation amending the facilities agreement”.

Based in Zurich, Aryzta also said earlier this week that it had signed on banks to conditionally underwrite its proposed €800 million share sale.

Aryzta, which supplies burger buns to clients including McDonald’s on Tuesday entered a standby underwriting agreement with Bank of America Merrill Lynch, UBS, Credit Suisse, JP Morgan and HSBC, sending its shares up as much as 18 per cent on the day.

However, a report yesterday suggested Swiss activist investor Gregor Joos was mounting a campaign to block the share sale, arguing the company should instead sell assets and slash management layers.