9th Nov 2020 15:41
Smiths News PLC - Swindon-based newspaper and magazine distributor - Refinances its existing senior finance agreement, which had been due to mature on January 2021, with a new GBP120 million three-year facility comprising a GBP45 million amortising term loan plus a GBP35 million bullet repayment term loan and GBP40 million multicurrency revolving credit facility. Agreement is with a syndicate of banks including existing investors HSBC, Barclays, Santander, AIB and Clydesdale, as well as new lender Shawbrook Bank and matures November 2023. Initial margin 5.5% per annum over LIBOR for term loan and revolving credit facility and 6% per annum over LIOR for bullet repayment term loan.
Includes amortisation schedule of GBP15 million per annum for the repayment of the amortising term loan and some restrictions on payments of dividends and other distributions, precluding a dividend for financial 2020.
Smiths News notes: "This pricing is higher than current levels, but remains competitive, and is reflective of the tightened credit markets at this time. The margin reduces as the company reduces its net leverage."
Current stock price: 26.30 pence
Year-to-date change: down 27%
By Anna Farley; [email protected]
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