7th May 2014 14:06
LONDON (Alliance News) - Devro PLC Wednesday said that most of the cash it raised from its recent US private placement will be retained in US dollars for its US investment project, while the rest will be used to fund its investment in China.
Last month, the sausage casings manufacturer said that its investment projects in the US and China are progressing to plan, which it said will help reduce its manufacturing costs further from 2016.
At the time, it said that the USD100 million US private placement, to ensure long term funding is in place to support the two projects, was successfully completed and it had already received USD50 million, with the remainder due in June.
Devro said Wednesday that a significant proportion of the cash will be retained in US dollars to fund the investment project in the US, and the remainder will be swapped into sterling.
"The raising of this debt ensures long term funding is in place to support the investment projects in the USA and China, and other cash needs. It also provides a more balanced funding structure between long and shorter term debt," the company said in a statement Wednesday.
Devro shares were trading flat at 222.25 pence Wednesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
DVO.L