‘The total amount of term debt has been reduced from approximately €900m to €450m, which will result in a halving of its cash interest expense. The residual original debt has been converted into a PIK note of €250m or converted to equity. A further revolving credit facility of €50m has been included in the new debt structure to bring additional liquidity headroom to the group’, writes Shaun Weston.

The name change demonstrates the company’s intention to focus on quality coffee

The transaction sees Autobar transfer ownership to its lenders, who have expressed their support and commitment to the group’s future strategy: to reinforce its credentials as a coffee roaster with multiple distribution channels, vending being the most important. In order to make this shift more tangible and visible to customers, suppliers, employees and other business partners, the company intends to change its name to Pelican Rouge.

Pelican Rouge is a long-established coffee brand with its origins in Antwerp in 1863. The name change demonstrates the company’s intention to focus on quality coffee, quality service and quality delivery throughout the entire customer experience.

The group will move its headquarters to Dordrecht, The Netherlands, where the coffee roasting activities are based.

“I’m extremely pleased that we now have the right capital structure in the business to allow us to continue our growth and premiumisation strategy,” said CEO Alain Beyens. “Accelerating our growth in coffee, capturing a share of the premiumising coffee market and moving forward as Pelican Rouge is exciting and will deliver opportunities for further value creation.”

We’re not sure we like the word ‘premiumisation’, but hey-ho.