30th Sep 2014 07:48
LONDON (Alliance News) - Meggitt PLC Tuesday said it has secured a USD900 million, five-year refinancing facility.
The new revolving credit facility, provided by 13 banks, replaces existing facilities of USD700 million and USD400 million due to expire in 2016 and 2017.
The new facility also includes one-year extension options at the end of the first and second years, Meggitt said.
As a result of the new financing, the FTSE 100 manufacturer will accelerate the amortisation of GBP1.7 million in debt issuance costs in 2014.
The initial margin payable on the new deal is around 25 basis points lower than the average margin payable prior to the refinancing, it said.
"This timely refinancing demonstrates the ongoing support of Meggitt's relationship banks while allowing us to benefit from the prevailing favourable market conditions to extend our debt maturity on more cost effective terms," said Meggitt Chief Financial Officer Doug Webb.
Meggitt shares were up 0.7% to 458.30 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
MGGT.L