Formal Agreement on Refinanci

RNS Number : 7235Q

Filtrona plc

17 April 2009

 



17 April 2009

Filtrona plc 

Formal Agreement on Refinancing of Bank Facilities

Filtrona plc ('Filtrona' or the 'Company') announces that it has signed an agreement with a syndicate of relationship banks to provide a total of £195m in banking facilities until April 2012. This will replace its existing facilities, which would have expired in November 2009 and May 2010.

The facilities comprise three year €84.7m and US$35.9m Term Loans and US$143.7m Revolving Credit Facilities (together 'the Facilities').  At exchange rates of US$1.49/£ and €1.13/£, the Facilities total £195m. The Company's net debt as at 4 April 2009 was £140m. 

Together with the Company's ongoing strong cash generation, the Facilities provide the necessary level of operational and financial flexibility to meet the Company's funding requirements for its next stage of development.

Taking account of the higher margin and fees payable under the Facilities, together with the anticipated increase in net pension interest and lower debt levels following the disposal of the North American Plastic Profile and Sheet business, it is estimated that the total net finance expense for the Company will increase in line with expectations by approximately £4m - £5m in 2009, compared to 2008.

The Facilities, which will be used for general corporate purposes, were arranged by Lloyds TSB Bank plc and The Royal Bank of Scotland plc. Bank of America, N.A., Abbey National Treasury Services plc, DBS Bank Limited, London Branch, and Citibank, N.A., London Branch, committed to the Facilities in general syndication and the deal closed oversubscribed.

Mark Harper, Chief Executive said: 'We are pleased that we have the continued support from existing relationship banks and that we are able to welcome into the syndicate new relationship banks. Within these difficult financing markets, this is a testament to Filtrona's strong market positions and cash generative business model'. 

Enquiries

Filtrona plc Steve Crummett, Group Finance Director Tel: [phone]

Financial Dynamics Sophie Kernon Tel: [phone]

 

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