3rd Aug 2005 10:39
Ashtead Group PLC03 August 2005 ASHTEAD GROUP PLC COMPLETION OF REFINANCING Ashtead Group plc, the international equipment rental group serving theconstruction, industrial and homeowner markets, announced a refinancing on 7July 2005 and the Company is pleased to announce its completion today. Therefinancing included: 1. the raising of approximately £70 million before expenses through the Placing and Open Offer of approximately 73.4 million New Ordinary Shares at 95.5 pence per share; and 2. the raising of $250 million (approximately £142 million), before expenses, by the issue of New Senior Loan Notes, which carry an interest rate of 8 5/8 % and will be repayable in full in August 2015. Dealings in the New Ordinary Shares have now commenced. Following the Placingand Open Offer a total of 400.2 million Ordinary Shares are in issue. From the proceeds of the refinancing, Ashtead has now repaid the ConvertibleLoan Note at a discount of approximately 11% and will redeem £42 million of theexisting Senior Loan Notes, which carry interest at a rate of 12%. Together these transactions have: • further de-leveraged the balance sheet and reduce borrowing costs; • further extended the average debt maturity to approximately 7 years; • avoided the potential dilution to existing shareholders which would occur if the Convertible Loan Note were to convert into equity; • broadened the investor base; and • facilitated the payment of dividends in the future. The Board believes that the stronger capital base created by the refinancingwill also provide significantly greater flexibility in developing the Group over the coming years. George Burnett, Chief Executive said: "We are particularly pleased to have received such a strong vote of confidencefrom both debt and equity investors." "The successful conclusion of the refinancing means Ashtead is now well placedto take full advantage of continuing strong market conditions and also to resume the payment of dividends. We look forward to reporting further progress in the coming year." Terms used in this Announcement shall have the same meanings as set out in theProspectus dated 7 July 2005. Contacts: Ashtead Group plc Cob Stenham Non-executive chairman 020 7299 5562George Burnett Chief Executive Officer ) 01372 362300Ian Robson Finance Director ) JPMorgan Cazenove Limited 020 7588 2828(Financial adviser, sponsor, joint broker and joint bookrunner)Julian OakleyDermot McKechnie Evolution Securities Limited 020 7071 4300(Joint broker, joint bookrunner and joint underwriter)Steve RobertsStuart Andrews The Maitland ConsultancyBrian Hudspith 020 7379 5151Emma Burdett This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ashtead Group