PrimePork Foods — Funding Structure
The R385 million funding structure across DFI senior debt and equity, the additional facilities and the use of proceeds underpinning PrimePork.
Section 13 · Business Plan
Funding Structure
The R385 million funding structure across DFI senior debt and equity, the additional facilities and the use of proceeds underpinning PrimePork.
| Source | R m | Instrument | Status |
|---|---|---|---|
| IDC | 145 | Senior term facility, 10-yr, 1-yr grace | Targeted — mandate-aligned |
| DBSA | 95 | Development loan, 10-yr, 1-yr grace | Targeted — mandate-aligned |
| Equity investors | 105 | Ordinary shares | In structuring |
| Sponsor equity | 40 | Ordinary shares | Committed |
| Total headline raise | 385 | Fully allocated | |
| Revolving working capital | ≥R100m | Seasonal / WC facility | Required — see Section 12.3 |
revolver and reserve
The R385m capital stack is fully allocated (IDC 145 + DBSA 95 + PE
105 + sponsor 40). Two additional elements are structurally required at
close: a working-capital revolver (≥R100m, peaking near R91m in Year 3)
to fund the inventory-and-debtor build; and a debt-service reserve of
~R55m (fundable from the equity tranches) to bridge the sub-1.0x Years
1–2. Presenting the R385m as fully funding the ramp without these would
misstate the requirement; this Memorandum models the complete
structure.
Proposed covenant package: minimum DSCR of 1.30x tested from Year 3
(holiday Years 1–2 against the funded reserve); net debt/EBITDA ceiling
of 3.5x from Year 3; contracted-offtake milestones as drawdown
conditions for expansion tranches; cession of inventory, receivables and
key contracts; distributions locked until trailing DSCR exceeds
1.5x.
13.2 Indicative term-sheet framework
To accelerate credit-committee engagement, the Company proposes the
following framework, incorporating every structural remedy identified by
the independent analysis.
| Term | Proposal |
|---|---|
| Borrower | PrimePork Foods South Africa (Pty) Ltd |
| Senior facilities | IDC R145m (10y, 1y grace); DBSA R95m (10y, 1y grace) |
| Working capital | Revolving facility ≥R100m for inventory & receivables |
| Equity | R145m (PE R105m + sponsor R40m), of which ~R55m funds an escrowed debt-service reserve for Years 1–2 |
| Security | First-ranking over plant & equipment; cession of retail/export contracts, inventory, receivables and insurance |
| Covenants | DSCR ≥1.30x from Year 3 (holiday Years 1–2); net debt/EBITDA ≤3.5x from Year 3; distributions locked until trailing DSCR >1.5x |
| Drawdown | Milestone tranches against construction & commissioning; expansion capex against contracted utilisation |
| Conditions precedent | Anchor retail/food-service contract(s); revolver committed; reserve funded; CEO/COO/CFO & Commercial Director contracted; certification plan agreed |
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of PrimePork Foods South Africa (Pty) Ltd.