Refinancing of Bank Facilitie

RNS Number : 4336E

Johnson Service Group PLC

21 December 2009

 



                        21 December 2009

Johnson Service Group PLC

Refinancing of Bank Facilities

Johnson Service Group PLC ("JSG") is pleased to announce that it has refinanced its previous bank facilities, which were due to expire on 31 December 2010, under a new £78.5 million Term and Revolving Facilities Agreement ("New Facilities") which runs to 30 April 2013.

The Banks in the New Facilities are Lloyds Banking Group, The Royal Bank of Scotland, Barclays Bank PLC and Santander.

The New Facilities, which are secured, comprise an amortising Term Loan of £58.5 million and a Revolving Loan of £20 million, which includes an Overdraft Facility of £5 million. The Term Loan amortises from December 2010. Arrangement and structuring fees of 2% are payable in cash at the start of the New Facilities, which will be amortised over the estimated life of the New Facilities. The margin payable on drawings under the New Facilities ranges from 300 to 400bps over LIBOR, with the initial margin set at 375bps. Financial covenants appropriate for the New Facilities have been agreed and will be tested quarterly. These comprise cash flow, interest and gearing covenants.

JSG has continued to reduce its debt over the last year with net debt falling from £78.5 million in December 2008 to an anticipated level of below £69 million at the end of December 2009. We currently expect that net debt will continue to reduce during the coming year. 

Warrant instruments were issued in April 2008 to the Lenders under the previous bank facilities over 2,957,636 Ordinary shares at an exercise price of 10p and with an expiry date of 31 December 2010. As part of the refinancing, the expiry date of the existing Warrants held by the continuing banks over 2,091,728 Ordinary shares is to be extended to 30 April 2013. All other terms of the Warrants remain unchanged.

John Talbot, Executive Chairman, said "We are delighted to have continued support from our banks. We have generated sufficient cash over the last eighteen months to significantly reduce the level of facilities required whilst maintaining an adequate level of headroom."

It is intended to issue a pre-close statement for the year to 31 December 2009 during the week commencing 4 January 2010.

Enquiries:

Johnson Service Group PLC
John Talbot, Executive Chairman	Yvonne Monaghan, Finance Director
Tel: [phone]	Tel: [phone]

Threadneedle Communications

Graham Herring/John Coles

Tel: [phone]

 

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