Monday, July 9, 2007
Not just wheat, that debt-based financing is biting too
Premier Foods said on Monday it would have to put up the price of bread “in the coming weeks” to recoup higher wheat prices. The group, which in March acquired RHM, the Hovis bread maker, also warned that higher interest rates on its £1.7bn debt would mean a bigger than expected interest charge for the year. The group has £700m of debt at fixed rates and another £700m capped at around 6.2 per cent.