DAVY VIEW

Dalata announced that it has completed a €600m refinancing via a mix of a term loan, a revolving credit facility (RCF) and its first private placing. The terms of the refi look attractive with a blended interest rate of c.5%. The structure of the debt facilities are similar to previous, with a term loan (€100m), a RCF (€375m) and private placing notes of c.€125m. The increase in the size of the facilities (c.20%) and the structure of the debt will continue to give it the capacity and the flexibility to pursue considerable growth initiatives. The addition of the private placing loans also gives further diversification in its debt profile. The cost of debt evidences the strength of Dalata’s balance sheet and the quality of its estate, including its green credentials. We forecast bank net debt of c.€216m at FY24 (c.1.3x bank net debt/EBITDA after rent). The new facilities give it considerable firepower to deploy expansionary capex and return cash to shareholders. We do not envisage any significant changes to our cash interest forecasts on the back of this.