Renold PLC Strategic Banking Partnership (1075N)
May 14 2015 - 1:00AM
UK Regulatory
TIDMRNO
RNS Number : 1075N
Renold PLC
14 May 2015
Renold plc
("Renold" or "the Company" or "the Group")
Strategic Banking Partnership
Renold, a leading international supplier of industrial chains
and related power transmission products, announces a new five year
strategic partnership with its current banks.
To support the Group's three phase Strategic Plan, Renold has
completed the re-financing of its core group banking facility that
was due to mature in October 2016. The revised facilities take
advantage of favourable market conditions for financing costs and
have been extended to mature in April 2020. The facility now also
includes a GBP20m accordion feature which allows the company to
access additional funding should the need arise.
The underlying GBP41m Multi-Currency Revolving Credit Facility
(MRCF) and GBP8m of ancillary facilities have been modified to
enhance debt management flexibility for the Group. The facilities
continue to be provided by a banking group comprised of Lloyds Bank
Commercial Banking and Handelsbanken. The MRCF is fully committed
until maturity.
The principal covenant is the Net Debt / EBITDA ratio, which
remains at a maximum of 2.50 times until maturity. Renold's recent
trading update, issued on 9 April 2015, indicated a Net Debt /
EBITDA ratio of approximately 1.0 times following a year of good
operating cash generation.
The new facilities will bring an immediate reduction in
borrowing costs with scope for further savings as leverage reduces.
This reduction in the margin on the new facility, combined with
lower leverage, is expected to give rise to annual savings in
external financing costs of approximately GBP0.3m.
Robert Purcell, Chief Executive of Renold, commented:
"The new financing agreement provides ongoing support for our
progressive capital investment plans and working capital needs as
we transition into the 'Growth' phase of our Strategic Plan.
Looking further ahead to Phase Three, the accordion feature also
means that the Group will be well placed to take advantage of
bolt-on acquisition opportunities that align to our Strategic
Plan."
14 May 2015
ENQUIRIES:
Renold plc 0161 498 4500
Robert Purcell, Chief Executive
Brian Tenner, Finance Director
Instinctif 020 7457 2020
Mark Garraway
Helen Tarbet
James Gray
NOTES FOR EDITORS
Renold is a global leader in the manufacture of industrial
chains and also manufactures a range of torque transmission
products which are sold throughout the world to a broad range of
original equipment manufacturers and distributors. The Company has
a well deserved reputation for quality that is recognised
worldwide. Its products are used in a wide variety of industries
including manufacturing, transportation, energy, steel and
mining.
Further information about Renold can be found on the website at:
www.renold.com
This information is provided by RNS
The company news service from the London Stock Exchange
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