(Alliance News) - iEnergizer Ltd on Wednesday said it has entered into a credit agreement for a five-year senior secured term loan facility of USD165 million, which includes a USD15 million revolving credit facility.
The Guernsey-based business process outsourcing firm said the facility - which has an interest rate of 3.75% plus the London Inter-bank Offered Rate - has been secured on significantly more attractive commercial terms than the existing debt facility which it is replacing, iEnergizer said. This had a minimum 7.0% interest rate.
The new facility does not restrict dividend payments, subject to maintenance of facility covenants, so iEnergizer will maintain its existing dividend policy.
iEnergizer said the facility was put in place to increase debt use within the company's overall capital structure, with existing debt facilities having been substantially repaid. The additional financing will be used to return cash to shareholders.
Shares in iEnergizer were trading 15% higher at 309.80 pence each on Wednesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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