20th Nov 2009 07:00
FOR IMMEDIATE RELEASE 20 NOVEMBER 2009
CHEMRING GROUP PLC
PRIVATE PLACEMENT OF LOAN NOTES
Chemring Group PLC ("Chemring" or "the Group") announces that it has completed a $280 million private placement of fixed interest loan notes with a number of institutional investors.
$80 million of the loan notes will mature in November 2016, and $200 million will mature in November 2019. The total issue carries an interest rate of approximately 5.5%, a more favourable rate than the Group currently enjoys. The proceeds will be used to fund the acquisition of Hi-Shear Technology Corporation, repay existing short and medium term debt, and provide additional working capital facilities for the Group.
Paul Rayner, Finance Director of Chemring, said:
"This private placement is our second offering, and we are delighted with the response from both existing and new investors. The strengthening of our balance sheet following the issue of the new loan notes will give us greater flexibility as we continue to pursue our growth strategy."
For further information:
|
Paul Rayner |
Finance Director, Chemring Group PLC |
01489 881880 |
|
Rupert Pittman |
Cardew Group |
0207 930 0777 |
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