2nd Dec 2011 07:00
02 December 2011
Micro Focus International plc
New Banking Facility
The Directors of Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L), are pleased to announce the agreement of a new banking facility with an enlarged group of banks comprising Barclays Corporate, Clydesdale Bank plc, HSBC Bank plc, Lloyds TSB Bank plc, and The Royal Bank of Scotland plc.
The new $275 million three year revolving credit facility will replace the existing $215 million revolving credit facility with Barclays Corporate, HSBC Bank plc, Lloyds TSB Bank plc, and The Royal Bank of Scotland plc which was due to expire in May 2012.
The margin on the new facility will be at the London Interbank Offered Rate(LIBOR) plus 1.75% - 2.35%, compared with LIBOR plus 2.25% - 2.75% in the existing facility, based on net debt to EBITDA ratio of up to 2.0 times. The financial covenants are (1) EBIT to interest cover ratio of a minimum of 4 to 1 and (2) Net debt to EBITDA limits of 2 times until 30 April 2013 and 1.5 times thereafter.
The new facility will be initially utilised to repay the outstanding gross debt under the existing facility which today stands at $70 million. Going forward, it may be used for acquisitions, dividends and/or share buy-backs and general corporate purposes.
Mike Phillips, Chief Financial Officer of Micro Focus said:
"This new banking facility, with an additional bank and on better terms than our existing facility, underlines the financial strength of Micro Focus and provides us with significant flexibility for the foreseeable future. We look forward to working with our banking partners as Micro Focus develops over the coming years."
Micro Focus will announce its Interim Results for the six months to 31 October 2011 on Wednesday 7 December 2011.
Enquiries:
Micro Focus | Tel: +44 (0)1635 32646 |
Kevin Loosemore, Executive Chairman | |
Mike Phillips, Chief Financial Officer | |
Tim Brill, IR Director | |
FTI Consulting | Tel: +44 (0)20 7831 3113 |
Charles Palmer | |
Clare Thomas |
About Micro Focus
Micro Focus, a member of the FTSE 250, provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com
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