New enlarged debt facilities to support growth

RNS Number : 5058B

Volex PLC

14 February 2022

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulations

Volex plc

("Volex" or the "Company")

New, enlarged debt facilities support ongoing growth plans

Volex plc (AIM:VLX), the global integrated manufacturing and power product specialist, announces it has successfully completed a refinancing with a syndicate of five banks, replacing its existing $100 million revolving credit facility with a new $200 million committed facility (the "Facility") together with an additional $100 million uncommitted accordion (the "Accordion").

The Facility has an initial maturity date of February 2025, with two one-year extension options. It is structured as a $125 million revolving credit facility and a $75 million term loan. The Facility has a borrowing cost at the Company's current leverage levels of 200 basis points over SOFR, compared to 230 basis points over the aggregate of SOFR plus a credit adjustment spread under the prior facility. The Facility also benefits from more relaxed financial covenants to provide increased flexibility to accommodate future acquisitions.  

The Facility and the Accordion will provide Volex with additional liquidity to support Volex's ambitious growth strategy, based on further investment in attractive organic and inorganic growth opportunities.

Jon Boaden, Chief Financial Officer of Volex, commented:

"We are pleased to have enlarged our credit facilities at an improved margin, reflecting the strength of support from our relationship banks and their confidence in our strategy, business model and long-term growth plans. The Facility will provide us with additional liquidity and improved flexibility to invest in high-growth organic opportunities, as well as further acquisitions, where we have a strong and demonstrable track record of value creation.

The new facilities also strengthen our ambitions to deliver sustainable growth as we continue to perform robustly, successfully navigating the current supply chain challenges while demonstrating our ongoing ability to pass through inflationary cost increases."

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For further information please contact:

Volex plc                                      [phone]
Nat Rothschild, Executive Chairman
Jon Boaden, Chief Financial Officer
Julian Wais, Head of Investor Relations

Singer Capital Markets - Nominated Adviser & Joint Broker                [phone]
Shaun Dobson
George Tzimas

HSBC Bank plc - Joint Broker  [phone]
Simon Alexander 
Joe Weaving 

Powerscourt - Media Enquiries                                                                    [phone]
James White 
Ollie Head

About Volex
Volex plc (AIM:VLX) is a global leader in integrated manufacturing for performance-critical applications and a supplier of power products. We serve a diverse range of markets and customers, with particular expertise in cable assemblies, higher-level assemblies, data centre power and connectivity, electric vehicles, and consumer electricals. We are headquartered in the UK and operate from 20 manufacturing locations with a global workforce of over 6,900 employees across 22 countries. Our products are sold through our own locally based sales teams and through authorised distributor partners to Original Equipment Manufacturers ('OEMs') and Electronic Manufacturing Services ('EMS') companies worldwide. The products and services that we offer are integral to the increasingly complex digital world in which we live, providing power and connectivity from the most common household items to the most complex medical equipment. For more information, please visit  www.volex.com

 

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