12th May 2015 08:30
LONDON (Alliance News) - International Public Partnerships Ltd Tuesday said it has increased the size of its corporate debt facility to GBP300 million from GBP175 million, a move that also cuts the costs of the facilities and extends the term, as it ensures it has enough flexibility to bid on its pipeline of new contracts.
Its new facility, which is also being provided by existing lenders Royal Bank of Scotland and National Australia Bank, is due for renewal in 2018 whereas the old facility was due to expire in December 2016, while the "overall cost of the facility has been substantially reduced through an improvement in the margins and a reduction in fees charged".
It said the margins on drawn amounts of the main facility have been cut to 175 basis points over the London Interbank Offered Rate, compared with 225 basis points over Libor on the former facility. The commitment fees on the facility are 70 basis points, and it will pay an arrangement fee of GBP750,000.
"The increase to £300 million will support the strong pipeline of new projects over the next 12 months, particularly greenfield projects whereby bids are required to be fully underwritten at the time of submission. As such the facility is intended to provide the company with the flexibility to invest in appropriate opportunities rather than serving as long-term, structural leverage," it said.
International Public Partnerships shares were up 0.3% at 138.10 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
International Public Partnerships