Refinancing of banking facilities

11th March 2014

Augean plc

("Augean" or "the Group")

Refinancing of banking facilities

Augean, one of the UK's leading specialist waste management businesses, is pleased to announce the refinancing of its banking facilities with HSBC bank plc.

During 2013 the Group met its short term working capital requirements, and supported certain capital investments, through an overdraft and revolving loan facility with HSBC bank plc (the Facility). This Facility was due for renewal on 2 March 2015, but the Board agreed to bring forward the renewal to March 2014, ensuring that at least 12 months of committed loan facilities were available to the Group at the time of signing the Accounts for 2013.

The renewal, with HSBC as the sole provider, took place on 7th March 2014, providing access to a new overdraft, term loan and revolving loan facility for an extended period to July 2017 (the new Facility). The new Facility provides debt funding to the Group of up to £15.0m, an increase from the £10.0m previously available.

The new Facility is subject to certain covenants, similar to those previously in place, including the cover of interest costs and the ratio of net debt to EBITDA.

Commenting on the refinancing, Richard Allen, group finance director, said:

"We are delighted to have renewed and extended our banking facilities with HSBC. The increased loan quantum and slightly extended term is expected to provide the Group with access to the funding it requires to support the growth of the business over the next 4 years."

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