Food distributor Everything Fresh Limited is once again turning to the capital markets to refinance the US$2.31-million bond it raised two years ago, which is now nearing maturity.

In its audited financial statements, the company said that on March 18 it received a letter of intent from GK Capital Management Limited to arrange a new bond to replace the existing facility, which falls due on June 30, 2026.

“The letter outlines GK Capital’s intention to act as lead arranger and broker for a new bond issuance to refinance the existing facility. The proposed refinancing remains subject to completion of due diligence, agreement of final terms, internal approvals, and execution of definitive agreements, and is not legally binding,” the company said of the post-year-end development.

The move brings the company back to a financing strategy it first deployed in 2024, when it raised the same US$2.31 million through a private bond arranged by GK Capital. At the time, the funds were used to pay down more expensive short-term debt and rebuild inventory as demand began to recover.

That period was marked by weaker hotel demand tied to US travel advisories, even as the company sought to strengthen its non-hotel segment and position for a rebound in tourism.

Less than two years later, that breathing room is starting to close.

With the bond due in June 2026, it has been reclassified as a current liability, reshaping the company’s debt profile. Current borrowings jumped to $713.6 million at year-end, more than double the $285.7 million a year earlier, while long-term debt fell to $30.8 million from $413.3 million.

Efresh’s refinancing effort comes at a time when the business itself is improving.

Revenue rose to $4.17 billion from $3.68 billion, while net profit increased to $42.8 million from $32.1 million, supported by stronger demand across its distribution network. Like most distribution businesses, Everything Fresh relies heavily on financing to keep goods flowing — purchasing inventory upfront and collecting cash later.

Inventory levels expanded during the year as the company moved to improve product availability, while cash and short-term deposits declined to $126.4 million from $211.1 million. At the same time, finance costs rose to $72.8 million from $58.4 million, reflecting the ongoing cost of carrying debt.

During the year, the company also drew down $582.4 million in new loans while repaying $538.8 million.

— Karena Bennett