26th May 2020 09:44
(Alliance News) - Micro Focus International PLC on Tuesday said it has launched two new tranches of term loans to partly refinance existing outstanding loans.
The FTSE 250-listed software and consultancy company has launched a EUR400 million and a USD400 million senior secured term loan B to partly refinance its existing senior secured term loan B due November 2021 and pay associated fees and expenses.
As part of the transaction, Micro Focus has decided to cancel completely its previously declared 58.33 US cent final dividend for the financial year that ended October 31, 2019. The payout already had been withdrawn in March.
The company said on Tuesday it plans instead to use the USD150.0 million of existing cash reserves to pay down part of the existing senior secured term loan B due November 2021.
The initial price indication for the new five-year facilities are anticipated to be at 4.50% above the euro interbank offered rate at an original issue discount of 3.0% on the Euro tranche, and 4.50% above London inter-bank offered rate at an original issue discount of 3.0% on the US dollar denominated tranche.
Micro Focus shares were up 8.7% at 456.30 pence each in London on Tuesday morning.
By Tapan Panchal; [email protected]
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