Cape Refinances Bank Facilities

LONDON (Alliance News) - Industrial services company Cape PLC Wednesday said its had refinanced, extending its facility maturity and giving it greater flexibility in its covenants, meaning it has the firepower to grow organically and potentially to make acquisitions.

In a statement, the company said it has signed a new GBP295 million revolving credit facility and a GBP50 million accordion, replacing its previous GBP200 million and AUD30 million facilities.

The old facilities had been due to expire in July 2015, while the new facilities expire in April 2018.

The new facilities were arranged with eight banks: existing lenders Barclays, Lloyds Bank and HSBC and new lenders Abbey National Treasury Services, AIB Group, DNB Bank, ICBC, and National Westminster Bank, part of Royal Bank of Scotland Group.

"These new facilities strengthen our financial position and provide us with the balance sheet to grow our business both organically and potentially acquisitively. The terms of these facilities reflect the banks' confidence in the strategic prospects for the group," Cape Chief Executive Joe Oatley said in the statement.

Cape shares were down 0.5% at 262.75 pence Wednesday morning.

By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1

Copyright © 2014 Alliance News Limited. All Rights Reserved.