Last checked at 24 Jul 2019 07:00
24 July 2019
Volex plc
("Volex" or the "Company")
New Revolving Credit Facility and Reduction in Finance Costs
Volex is pleased to announce that it has refinanced the group's US$30 million revolving credit facility ("RCF"), which was due to expire in July 2019. The RCF, provided by Lloyds Bank plc and HSBC UK Bank plc, has been extended on improved terms for a three-year period, with a maturity date of July 2022.
Changes to the terms of the RCF include:
• a 40 basis point (bps) reduction in the non-utilisation fee and a 70 bps reduction in interest-rate margin;
• fewer restrictions in key operational covenants; and
• a $10 million uncommitted "accordion" feature to provide further capacity, up to a total RCF limit of US$40 million, for potential future acquisitions to support the group's strategy.
Volex currently has a net cash balance of $16.4 million.
Daren Morris, Chief Financial Officer of Volex, commented:
"We are pleased to have finalised this facility, on significantly improved terms, which reflects the ongoing strength of our business. This facility gives us both the flexibility and headroom to act on our investment decisions."
Enquiries
For further information please contact:
Volex plc +44 7909 995 887
Nat Rothschild, Executive Chairman
Daren Morris, Chief Financial Officer and Company Secretary
N+1 Singer - Nominated Adviser & Joint Broker +44 20 7496 3000
Shaun Dobson
Justin McKeegan
Whitman Howard - Joint Broker +44 20 7659 1234
Hugh Rich
Nick Lovering