Synergia Energy Regulatory News (SYN)

1 Apr 2009 07:00



Plastics Capital plc

(the "Company" or the "Group")

Banking facilities update

Plastics Capital plc (AIM: PLA), the acquisitive niche plastics products group, is pleased to provide an update on an agreement reached with its bankers, Royal Bank of Scotland ("RBS"), in relation to the banking facilities that RBS currently provides to the Company.

Some minor amendments to these facilities have been agreed in order to provide the Company with greater covenant and cash headroom over the next 12 months, as bank debt is repaid. 

These amendments were considered prudent given the significant volatility of sterling in recent months and the impact that this volatility could have on covenant calculations and short term hedging costs, at a time when trading conditions, as indicated on 19 February 2009 have been, and may continue to be difficult. The costs associated with amending these facilities were not significant.

Commenting, Faisal Rahmatallah, Executive Chairman, said: 

"The amendments to our banking facilities now agreed with RBS provide us with greater flexibility over the next 12 months. We are pleased with the ongoing support provided to the Group by RBS. The need for relatively minor amendments and our ability to secure them emphasises the underlying strength of our businesses."

Notes to Editors

Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets. The Group has five factories in the UK, one in Thailand and sales offices in the USA and Japan. Approximately 50 per cent of sales are exported to over 70 countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness. The Group has approximately 310 employees. 

Further information can be found on www.plasticscapital.com