3i adds two new credit facilities

Private equity group 3i has extended its revolving credit facilities to 31 October 2012 but cautioned that private equity and mergers and acquisition markets remain subdued.The group secured two new facilities, the first is a new £100m Multicurrency Facility, which will commence on 29 September 2009 and replace an existing £150m facility. The second is a £250m Multicurrency Forward Start Facility, which will commence on 20 September 2010. 3i invested a total of £155m in the five months ended 31 August, compared with £622m in the equivalent period last year. In addition, £56m (2008: £268m) was invested on behalf of co-investment funds managed by 3i.Realisations received by 3i were £448m in the five months period (2008: £560m). The group cut net debt to £858m at the end of August from £1.91b at 31 March 2009.'Having further strengthened 3i's balance sheet, our priorities are to preserve and optimise the value of our existing portfolio as well as to continue to position the business for the upturn,' said chief executive Michael Queen.'Despite the recent strong performance of equity markets, the economic outlook is still fragile and private equity and mergers and acquisition markets remain subdued.'