27th Nov 2008 07:00
27 November 2008
Logica announces new banking facilities maturing in 2011 and 2013
Logica has signed new long term banking facilities of ¢â€š¬500 million (‚£420 million) with maturity in 2011 and 2013, replacing around half of the Company's existing facilities. The new floating rate, multi-currency facilities are being provided by a group of 11 of Logica's European relationship banks.
The new facilities comprise a ¢â€š¬200 million, 3-year facility, which will mature in November 2011, and a ¢â€š¬300 million, 5-year revolving facility, which will mature in November 2013.
These facilities replace Logica's existing ‚£330 million facility (due to mature in September 2010) and its existing ‚£150 million facility (due to mature in November 2010). The group's other medium term facilities are unchanged, being the ¢â€š¬348 million term loan (due to mature in September 2010) and a ‚£25 million facility (due to expire in April 2010).
The covenants remain the same as under the Company's previous facilities. Logica's overall effective interest rate on its bank facilities in 2009 is expected to be broadly unchanged, reflecting the balance of lower LIBOR rates and higher margins in the current economic environment.
Under the terms agreed, Logica will also have the flexibility to add further banks and increase the amount of the facility at a later date. Today's announcement follows actions to extend and increase facilities in November 2007 and April 2008 and demonstrates Logica's active approach to financing.
In line with our previous guidance, Logica expects net debt/EBITDA to be in the 1.7 to 1.9x range at the end of 2008 and in the 1.6 to 1.8x range at the end of 2009.
For further information:
Logica Investor Relations: Karen Keyes/Frances Gibbons +44(0) 20 7446 4372/+44 (0) 7801 723 682
Logica Media Relations: Carolyn Esser/Louise Fisk +44 (0) 20 7446 2887/ +44(0) 7841 602 391/+44(0) 7798 857 770
Brunswick: Tom Buchanan +44 (0) 20 7404 5959
Notes to editors:
Logica's Q3 interim management statement was published on 14 November 2008 and is available at www.logica.com.
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