(Alliance News) - Micro Focus International PLC said Friday it has enlarged two new loan facilities, which will go towards refinancing its existing senior secured term loan due November 2021, and pay associated fees and expenses.
A EUR600 million senior secured term loan facility was increased from EUR400 million, and a USD650 million facility enlarged from USD400 million.
The final pricing for the new five-year facilities is 4.5% above euro interbank offered rate at an original issue discount of 3.0% on the euro tranche, and 4.25% above london inter-bank offered rate at an original issue discount of 2.5% on the US dollar denominated tranche.
"This very positive outcome demonstrates the strength of the Micro Focus proposition and the cash generative qualities of our recurring revenue model. This is an important step as we work to deliver on the operational improvements we set out in our Strategic and Operational Review in February," said Chief Executive Officer Stephen Murdoch.
Shares in the FTSE 250-listed software and consultancy company closed 9.5% lower at 406.70 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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