22nd Mar 2018 09:12
LONDON (Alliance News) - RHI Magnesita NV said Thursday it has secured a new term loan to the tune of EUR305.6 million, a day after it posted solid earnings and revenue growth.
RHI Magnesita's new loan is for five years, and has an initial cost of Euribor plus 75 basis points.
The new term loan, the company said, replaces its existing EUR477.2 million syndicated term and revolving loan agreement it signed in July last year, of which it drew down EUR266.5 million. It expects this loan to be disbursed within 30 days.
RHI Magnesita, which makes refractory products and systems, said the refinancing extends the final maturity date by a year to June 2023 and will give it the flexibility it needs to achieve further balance sheet and funding cost synergies.
RHI Magnesita on Wednesday said it has registered solid revenue and earnings growth in 2017, with adjusted pro-forma revenue increasing by 11% to EUR2.68 billion, driven by growth in both its Steel and Industrial divisions, while earnings before interest, taxes, and amortisation grew 39% to EUR304.1 million, driven by higher sales.
On a statutory basis, 2017 revenue rose to EUR1.95 billion from EUR1.65 billion, with pretax profit dipping to EUR23.5 million from EUR105.8 million, but these figures only included two months' worth of results from Magnesita Refratarios.
RHI Magnesita shares were down 0.3% at 4,500.00 pence each on Thursday.
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