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(Alliance News) - Volex PLC on Wednesday said it has refinanced a USD30 million loan which had been due to expire this month.
The revolving credit facility, which was provided by Lloyds Bank PLC and HSBC Bank PLC, has now been extended to July 2022 "on improved terms".
Changes to the loan include a reduction of 40 basis points to the non-utilisation fee on the loan and a 70 base percentage point reduction in the interest rate margin.
In addition, the new facility has less restriction on "key operational covenants" and now includes USD10 million uncommitted accordion which raises the total loan limit to USD40 million.
The power cables company said it may use the larger loan amount in "potential future acquisitions" in support of its strategy.
At present, Volex's net cash balance sits at USD16.4 million.
Chief Financial Officer Daren Morris said: "We are pleased to have finalised this facility, on significantly improved terms, which reflects the ongoing strength of our business. This facility gives us both the flexibility and headroom to act on our investment decisions."
Shares in Volex were down 1.5% at 86.55 pence on Wednesday.