McBride PLC Refinancing on improved terms (2177J)
June 27 2017 - 02:00AM
UK Regulatory
TIDMMCB
RNS Number : 2177J
McBride PLC
27 June 2017
27 June 2017
McBride plc
Refinancing on improved terms
McBride plc ("the Group"), the leading European manufacturer and
supplier of Co-manufactured and Private Label products for the
Household and Personal Care market, today announces the refinancing
of the Group in further support of the Group's Repair, Prepare,
Grow strategy.
The Group has secured replacement banking facilities from a
panel of international banks and using these increased facilities
will repay its US Private Placement Notes ("USPP"). These actions
will lower the cost of the Group's debt financing from the
financial year starting on 1 July 2017 by approximately GBP2.0m per
year.
Replacement Bank Facilities
The existing EUR 140m multi-currency revolving credit facility
("RCF") has been increased to a five year EUR 175m facility with a
maturity of June 2022.
Features of the replacement facilities include:
- a EUR 175m RCF of which approximately EUR 70m will be drawn,
providing the Group with significant committed funding headroom
- a 5 bps reduction in both margin and non-utilisation fees
- the addition of further borrowing entities and currencies,
increasing flexibility going forward
- a EUR 75m uncommitted accordion feature will provide
additional facilities for potential future acquisitions in support
of the Grow phase of our strategy
The bank facilities are provided by a syndicate of HSBC, KBC,
Bayern LB, BNP Paribas and Barclays.
US Private Placement Notes
The existing $50m 5.51%(1) 2020 USPP and $40m 5.38%(1) 2022 USPP
will be repaid in full by drawing on the increased RCF.
Under the terms of the USPP arrangements, the Group will pay a
'make-whole' payment to existing USPP note-holders of approximately
GBP11m(2) . At the same time the Group will close out the
Euro/Dollar cross-currency interest rate swaps relating to the
existing USPP notes which have a current mark-to-market net value
of approximately GBP11m(3) in favour of the Group.
Financing charges
Based on the current level of borrowings and interest swap
rates, and taking into consideration the amortisation of initial
fees, the Group's pro forma annual underlying finance charge will,
over a full year, reduce by approximately GBP2m(4) per annum. The
Group's overall ongoing average cost of debt, after the repayment
of the USPP, will reduce by approximately 310bps (4) to 150bps.
The 'make whole' payment to USPP note-holders will be treated
for the Group's financial statements for the 12 months to 30 June
2017 as an exceptional finance charge. The total exceptional
finance charge associated with this transaction will be
approximately GBP13m comprising the make whole payment and
additional USPP closure costs.
Net Debt
Following completion of all the transactions surrounding this
change, which are expected by 30 June 2017, the impact on the
Group's current net debt level will remain broadly unaffected.
Chris Smith, Chief Financial Officer of McBride, commented:
"As we prepare for the Grow phase of our strategy, we have
secured an improvement in the cost, flexibility and duration of our
banking facilities. The completion of this exercise represents
another important milestone in the delivery of Repair, Prepare and
Grow and reflects the strong ongoing support from our chosen
banks."
Notes
1 - Adjusted for the impact of cross currency swap
agreements.
2 - Will be treated as exceptional finance costs. Value
estimated as at 23 June 2017.
3 - Will be treated as a movement on the derivative already
reported in our income statement. Value estimated as at 23 June
2017.
4 - As compared to the position at 30 June 2016
For further information please contact:
McBride plc
Chris Smith, Chief Financial
Officer 0161 203 7570
FTI Consulting
Ed Bridges, Nick Hasell 020 3727 1017
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation which came
into effect on 3 July 2016.
-Ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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