16th Feb 2015 08:57
LONDON (Alliance News) - Volution Group PLC Monday said it has agreed a refinancing of its banking facilities, signing a new GBP90 million four-year multi-currency revolving credit facility to replace previous arrangements.
In a statement, Volution, which supplies ventilation products to the residential construction market, said it agreed the new facilities with HSBC, Royal Bank of Scotland and Danske Bank, maturing April 30, 2019.
The previous facilities had been due to expire in February 2018 and February 2019.
According to the company, the deal "significantly" reduces the costs of interest and gives it more flexibility and headroom.
The effective financing cost will fall by about 90 basis points, with gross debt will come down by about GBP12 million, the company said.
"The refinancing strengthens our financial position, helping to underpin the group's strategy to grow, both organically and through selective acquisitions. The terms of the new facility reflect the banks' confidence in the group's strategic prospects and credit quality," Ronnie George, chief executive, said in a statement.
Volution shares were untraded on Monday morning. The stock closed at 148.75 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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