Synthomer Regulatory News (SYNT)

25.06.18

PROPOSED OFFERING OF €300M BOND & REFINANCING

Synthomer plc ('Synthomer' or 'the Group'), is pleased to announce a refinancing of its existing bank facilities (the "Refinancing") consisting of an offering (the "Offering") of a €300m seven-year unsecured senior notes (the "Notes") and a new €300 million four-year revolving credit facility ("RCF").

The proceeds of the issue and sale of the Notes will be used, together with cash on hand and borrowings under the new revolving credit facility, to: (i) repay all amounts outstanding under our existing revolving credit facility; (ii) repay amounts outstanding under our existing term loan; and (iii) pay certain costs, expenses and fees related to the Refinancing.

The proposed Refinancing will strengthen the Group's financial position through increased financial flexibility, providing an appropriate capital structure and allowing it to secure, in relation to the Notes, an attractive fixed interest rate for the next seven years. The Group's strategy for further continued profitable growth is expected to be supported with this efficient capital structure.

Commenting on the Refinancing, Stephen Bennett, CFO, said:

"This Refinancing is being undertaken ahead of the maturity of our current facilities and aims to achieve favourable terms in both the bond and bank markets. This new broader capital structure will allow the Group more flexibility to deliver on its strategy of building sustainable growth".

There will be no public offering of the Notes. The Notes are being offered and sold in offshore transactions outside the United States in compliance with Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). The Notes may not be offered, sold or delivered within the United States (as defined in Regulation S under the U.S. Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.