• Orchard Finance

Case study Hoogvliet Super


“I am very satisfied with Orchard's guidance and expertise. They do exactly what is needed, at the right time and efficiently. A reason for me to pay a higher completion fee than the maximum agreed upon in advance.”

Frans Schijf, CFO Hoogvliet


Challenge

Hoogvliet Super (hereinafter referred to as “Hoogvliet”) purchased a site in Bleiswijk in 2010 for the construction of its new bakery, butcher's shop, service center and a mechanized and automated distribution center. Given the size of these planned investments, Hoogvliet needed a thorough financing plan that took into account all relevant internal and external conditions, including the agreements within the Hoogvliet group and the agreements with the purchasing group of which Hoogvliet is a member.


Solution

In 2014 Hoogvliet translated its investment plans into the first contours of a financing plan. From the end of 2014, Hoogvliet hired Orchard as financial advisor for the further finalization and implementation of the financing plan. This resulted in a final financing plan in the spring of 2017 with a robust structure, whereby Hoogvliet retains a high creditworthiness, and uses simple and cheap financing instruments, which offer Hoogvliet a lot of flexibility. Two banks were then selected through a tender process to provide the requested financing.


Results

At the beginning of 2018, Hoogvliet signed a club deal with the two selected banks, based on LMA documentation. With this club deal, all objectives of the financing plan have been achieved or exceeded. By making use of, among other things, a phased take-up and green financing, a very cost-efficient solution has been created. In addition, Orchard provided support in setting up the cash management with the new banks and helped creating and implementing the interest rate risk policy. Financing, cash management and interest rate risk management have been summarized for Hoogvliet in a user manual.