New Long Term Funding

RNS Number : 4398F

Senior PLC

09 October 2008

 

New Long Term Funding

Senior plc ('Senior' or 'the Group') announces that it has issued $120m (£69.3m*) of new loan notes through a private placement offer.  The issuance consists of three tranches of loan notes: $25m maturing in October 2015; $75m maturing in October 2018; and $20m maturing in October 2020.  The new loan notes carry a weighted average fixed coupon rate of 6.77% per annum.

The new funds will be used to repay $75m (£43.3m*) of loan notes, which mature on 22 October 2008.  They will also be used to reduce the level of borrowings under the Group's existing £80m revolving credit facility.  The maturing loan notes have a coupon rate of 6.52% per annum. 

Following these transactions, the Group will have committed facilities of £200m*, with a weighted average maturity of 6.4 years.  This represents an increase in maturity profile of 3.2 years.  The next material refinancing is now not due until July 2012. 

At the end of June 2008, the Group had net debt of £121.7m. This increased to approximately £130m at the end of September primarily due to the strengthening of the US$, as the majority of the Group's borrowings are denominated in US$. 

Mark Rollins, Group Chief Executive, commented:  'Given the ongoing uncertainty in the financial markets, it is pleasing to report that the new facility secures the Group's funding requirements for the foreseeable future.  Senior remains strongly cash generative'.

The Interim Management Statement for the third quarter will be issued on Monday 20 October 2008.

Note: The sterling amounts indicated (*) assume an exchange rate of £1 : US$1.73

Further information 

Mark Rollins	Group Chief Executive, Senior plc	[phone]
Simon Nicholls	Group Finance Director, Senior plc	[phone]
Clare Strange	Finsbury Group	[phone]

About Senior

Senior is an international manufacturing group with operations in 11 countries.  It is listed on the main market of the London Stock Exchange (symbol SNR).  Senior designs, manufactures and markets high technology components and systems for the principal original equipment producers in the worldwide aerospace, diesel-engine, exhaust system and energy markets. It employs over 5,800 people worldwide.

Further information on Senior plc may be found at: www.seniorplc.com

 

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