LONDON (Alliance News) - Plastic products company Plastics Capital PLC Friday said it has now completed its acquisition of Shengli Printing Science and Technology Co Ltd and has also signed a new GBP10.5 million committed banking facility with Barclays Bank.
In a statement, the maker of products like plastic mandrels, bearings and polyethylene films said its new banking facility has a final maturity date of March 2018 and is made up of a GBP5 million revolving credit facility and GBP5.5 million amortising term loan. The new facility replaces an existing facility that was due to mature in June 2015.
The completion of the Shengli Printing Science acquisition was delayed for several months as the company awaited regulatory clearance. Plastics Capital bought the Chinese producer of creasing matrix for about GBP2.2 million.
"The Shengli acquisition gives us a strong platform in China from which we can develop further. The new banking facility reduces the cash flow required to service our debt, pushes out any need for refinancing until 2018 and lowers our interest costs," Chairman Faisal Rahmatallah said in a statement.
Plastics Capital shares were up 2.6% at 135.88 pence Friday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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