Candover Investments To Make Debt Repayment Rather Than Distribution

LONDON (Alliance News) - Candover Investments PLC on Thursday said it plans to use its current cash balances to make an initial repayment on its debt rather than making a distribution to shareholders.

The investment company said under the terms of its debt facility, a EUR19.4 million prepayment is allowed, subject to the lender delivering a minimum return of 1.15-times on the principal repaid.

If this payment was delayed to after August 12 this year, Candover said the minimum return would rise to 1.4-times principal, diluting Candover's net assets by GBP3.85 million.

As a result, due to the length of the lock-up period and structure of Candover's debt arrangements, it said the best use of current cash balances will be to make an initial repayment of debt.

Candover said trading for its Hilding Anders bed-making portfolio company in the first quarter in Russia stabilised, while trading for the company in Europe has improved year-on-year. For Expro, the well flow management provider to the oil and gas industry, market conditions remain challenging.

Shares in Candover were down 8.2% to 128.5 pence.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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