Silver Fern Farms has secured a larger bank funding facility after an improvement in profit, giving the company a stronger financial platform for the next two years.
The funding line has been increased from $449 million to $520 million. Despite the bigger facility, the reported change in pricing is limited, with only a small rise in the rate attached to the borrowing.
The move suggests lenders have extended additional support as the company’s earnings position improved. A larger facility can provide more headroom for day-to-day financing needs and help a business manage working capital with greater flexibility.
While the funding cost is set to edge higher, the increase appears modest relative to the size of the expanded facility. That balance between greater access to capital and only a slight rate rise is likely to be seen as a positive outcome for Silver Fern Farms.
