US Private Placement

15 Dec 2006 07:58

Northgate PLC15 December 2006 15 December 2006 Northgate plc US Private Placement Northgate plc ('Northgate' or the 'Group'), the leading commercial vehicle hirecompany in the UK and Spain, today announced that it is issuing approximately£175 million of senior guaranteed loan notes into the US Private Placement debtmarket. Notes were issued on 14 December 2006 in both US dollars ($245 million)and UK sterling (£21 million) with further notes scheduled to be issued in USdollars ($50m) in January 2007. The notes are fixed rate and unsecured, with amaturity of 7 and 10 years. The proceeds of the issue are being applied toreduce the Group's existing bank debt. The placement extends the maturity profile of Northgate's debt facilities whilsttaking advantage of favourable longer-term UK sterling interest rates. After swapping US fixed interest rates into UK sterling fixed interest rates,the weighted average interest rate payable by the Group on these notes isapproximately 5.78%. The reduction of Northgate's existing bank debt has no transactional costs underthe terms of the facilities and creates capacity to fund the Group's continuedgrowth. Northgate's interim results will be announced on 9 January 2007. -Ends- For further information, please contact: Northgate plc Tel: 01325 467558Steve Smith, Chief Executive OfficerGerard Murray, Group Finance Director Hogarth Partnership Limited Tel: 0207 357 9477 Andrew JaquesBarnaby FryAnthony Arthur Further information regarding Northgate can be found on the Group's website:http://www.northgateplc.com This information is provided by RNS The company news service from the London Stock Exchange