Babcock Regulatory News (BAB)

11 September 2019

Babcock International Group PLC (Babcock or the Company) 

Update on refinancing

Following the regulatory news release this afternoon relating to our bond issue, Babcock is providing this update to summarise the completion of our recent refinancing. This bond issue follows the renewal of the Group's 5-year Revolving Credit Facility and confirmation of our BBB credit rating.

Bond issue

The Group has issued €550 million (c.£500 million) of 8-year bonds expiring in 2027. The proceeds from these bonds have been swapped into sterling, with 50% fixed interest rate and 50% floating interest rates, which currently equates to an interest rate of around 3%.

Revolving Credit Facility

The Group has renewed its Revolving Credit Facility (RCF). This facility gives the Group access to up to £775 million and the facility expires in 2024.

Credit rating

Following its annual credit review, the Group's Standard & Poor's credit rating remains at BBB

Effect on financial results

The proceeds from this new bond issue will initially be used to pay down maturing loans and our RCF during this financial year (FY20). We will then pay down further USPP notes towards the end of the next financial year (FY21). The estimated impact of this is to increase finance costs by around £5 million in FY20 and around £7 million in FY21 and reduce finance costs by around £2 million each year in the years following.

ends

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