28th Mar 2019 09:29
LONDON (Alliance News) - Waste disposal firm Biffa PLC has agreed a new GBP350 million credit facility with a consortium of unnamed banks, it said Thursday.
The facility will last for five years, expiring March 2024, with a possible two-year extension. It replaces its existing facilities which were due to expire in July 2021.
Biffa said the new financing will provide it with a lower cost of debt, increased maturity, and better covenants. It will save around GBP2.5 million on margins a year, Biffa added.
Chief Financial Officer Richard Pike commented: "We are delighted to have refinanced our core bank facility and further diversified our lending group. Together with our finance lease facilities, we now have just under GBP500 million of committed facilities.
"Leverage continues to remain broadly constant at around 2.0 times net debt to earnings before interest, tax, depreciation, and amortisation, despite ongoing investment for future growth and after taking into account the recent acquisition of SWR Newstar."
Biffa bought SWR Newstar for GBP25.8 million earlier in March.
Shares were 4.1% higher in early trade on Thursday at 230.50 pence each.
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