Tirlán Co-op launches process to close out Exchangeable Bond

The Bond, originally issued in January 2022, provided valuable funding at a very competitive interest rate of 1.875% to enable the farmer-owned Co-operative to acquire full ownership of what is now Tirlán.

In order to fund the buy back of the Bond, the Co-op will place 17 million shares in Glanbia plc (“Glanbia”) with institutional investors by way of an accelerated bookbuild, which will be launched immediately after this announcement. 

Tirlán Co-op intends to use the entire proceeds from the Share Placement for the concurrent repurchase of its outstanding €250 million Exchangeable Bond. Tirlán will issue an invitation to holders of outstanding bonds for such bonds to be re-purchased and cancelled by the Co-op. 

The Shares being placed represent approximately 7% of Glanbia’s share capital. Glanbia has confirmed to Tirlán that, in line with its current policy of repurchasing its own shares, it wishes to participate in the Equity Placement by placing an order for up to 45% of the Share Placement (capped at a total cost of €100 million). Any shares acquired by Glanbia in this placement will be cancelled. Assuming the 17 million shares are fully placed, Tirlán will hold approximately 17.8% of the issued share capital in Glanbia following completion (including the related cancellation of shares). Tirlán will remain the largest equity investor in Glanbia and continues to be a strong supporter of its strategy.

The Co-op issued €250 million in five-year secured exchangeable bonds in January 2022. Structured as a low-interest, equity-linked instrument, the Exchangeable Bond allowed the Co-op to borrow against its shareholding in Glanbia while retaining ownership and dividend rights throughout its term. The interest rate on the Bond was 1.875%, reflecting the strength of the Co-op’s position and the efficiency of the funding structure.

Tirlán will provide a further update when this process is completed.