Mcbride Regulatory News (MCB)

29 November 2024

McBride plc

Successful completion of refinancing

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McBride plc (the "Group" or "Company"), the leading European manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets, is pleased to announce the successful refinancing of its banking facilities.

The new facility comprises a €200 million Revolving Credit Facility (RCF) package, with a four-year maturity including an option to extend by up to two years.

The new arrangement includes a €75 million uncommitted accordion feature to provide additional facilities for potential future acquisitions or other financing needs, also with a four-year maturity.

Additional information relating to these new facilities are as follows:

- The Company has secured improved terms and conditions when compared to the revised terms following the September 2022 financing reset

- The debt pricing is on a sliding scale, dependent upon the company's debt cover ratio as tested on a 6 monthly basis.

- Covenants are normalised and limited to debt cover and interest cover. They are also at the same levels as the 2021 arrangements

- The facilities are un-secured, removing the security on properties and assets required since September 2022

- The block on shareholder distributions is now removed, permitting the Company to restore the payment of dividends and consider share buy-backs

The new facility continues to be structured as a Sustainability-Linked financing, reflecting the Company's ongoing commitment to its Environmental, Sustainability and Governance (ESG) agenda. The revised facility includes updated and enhanced Sustainability Performance Targets (SPTs) that are closely aligned with McBride's sustainability strategy.

The refinancing was provided by a syndicate of international banks. The Company is pleased to welcome the new lenders to its banking group alongside the existing banking partners who have rolled over into these revised facilities.

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Mark Strickland, Chief Financial Officer said:

"We are delighted to announce the completion of this refinancing, which provides McBride with a strong financial platform for the coming years. The increased un-secured facilities and extended maturity provides the business with flexibility and security as we continue to execute our growth strategy. The refinancing secures improved terms and conditions on our borrowing facilities, reflecting the Company's solid financial performance metrics. The removal of the block on shareholder distributions extends flexibility to the business in its capital allocation options. We are also particularly pleased that the refinancing maintains the Sustainability-Linked structure, with enhanced and updated SPTs, underlining our commitment to sustainable business practices. Finally, we wish to thank the lenders who have stayed in the facility for their ongoing support, and we look forward to working together with our new partners."