2005 press releases

Northern Foods plc announces that, on 20 December 2005, it issued approximately £142.7 million (US $250 million) of senior guaranteed loan notes into the US Private Placement debt market. Notes were issued in both US dollars ($155 million) and pounds sterling (£54.25 million). The notes are fixed rate and unsecured, with a maturity of 7, 10 and 12 years. The proceeds of the issue will be used to repay £91 million of 6.75% convertible bonds and other bank debt.

The placement extends the maturity profile of Northern Foods’ debt facilities, whilst taking advantage of favourable longer-term interest rates. After swapping US fixed interest rates into sterling fixed interest rates, the weighted average interest rate payable by the company on the notes will be approximately 5.5%.

The early repayment of the convertible bonds has no adverse cash impact. Under IFRS, there will be a one-off pre-tax charge to the income statement in the financial year 2005/06 of approximately £10 million.