11th Sep 2019 16:18
(Alliance News) - Babcock International PLC said Wednesday its recently completed refinancing will cost GBP12 million over the next two years, before resulting in annual savings of around GBP2 million thereafter.
As part of the refinance, Babcock raised EUR550 million through the issue of bonds expiring in 2027. The new bonds are split equally between fixed interest rate and floating interest rate debt.
Babcock - an engineering firm - also renewed its GBP775 million revolving credit facility.
Proceeds from the bond issue will be used to pay down its maturing loans and the drawn down elements of its revolving credit facility in the current financial year ending March 2020. In the next financial year, Babcock will then use more proceeds to pay down other debt.
The FTSE 250-listed firm expects this refinancing to result in a GBP5 million rise in finance costs in financial 2020 and a GBP7 million rise in costs in financial 2021. In subsequent years, the refinancing will results in annual savings of GBP2 million.
Shares in Babcock were 0.7% lower at 538.20 pence in London on Wednesday.
Related Shares:
Babcock