Costain Group PLC Costain Refinancing of Bank and Bonding Facilities (1819H)
26 July 2023 - 4:00PM
UK Regulatory
TIDMCOST
RNS Number : 1819H
Costain Group PLC
26 July 2023
Costain Group PLC
26 July 2023
Costain Completes Refinancing of its Bank and Bonding
Facilities
Costain Group PLC ("Costain" or the "Group") announces that it
has successfully concluded negotiations with its bank and surety
facility providers to refinance a new three-year agreement of its
bank and bonding facilities.
The Group's new facilities agreement to September 2026 comprises
an GBP85m sustainability-linked revolving credit facility (RCF),
and surety and bank bonding facilities totalling GBP270m, with the
reduction in facilities reflecting the Group's positive cash
generation and cash position . This new agreement replaces the
previous one-year "amend and extend" of its facilities from
September 2023 to September 2024, as announced in November
2022.
The new facility is backed by a group of four banks and five
sureties, with Lloyds Bank acting as coordinator, Lloyds Bank and
HSBC as joint sustainability coordinators, together with Crédit
Industriel et Commercial (CIC) and National Westminster Bank
(NatWest), the latter being a new addition to the banking
group.
Costain had a positive net cash balance of GBP123.8m as of 31
December 2022, comprising Costain cash balances of GBP67.3m and
cash held by joint operations of GBP56.5m. The revolving credit
facility was undrawn throughout 2022 and 2023 to date. Utilisation
of the total bonding facilities as of 31 December 2022 was GBP88.8m
(FY 21: GBP100.7m).
The sustainability linkage includes three key performance
indicators (KPIs) relating to reduction in greenhouse gas
emissions, spend with small, local business and charities, and an
increase in gender diversity.
Alex Vaughan, Chief Executive Officer, commented:
"I am pleased that we have successfully secured a new three-year
facilities agreement , with Costain's continuing strong cash
generation enabling us to reduce our overall level of bank and bond
requirements for the Group. I am also delighted that NatWest has
joined our banking group, demonstrating its confidence in our
business plan. "
Costain will issue its results for the six months to 30 June
2023 on 23 August 2023.
Enquiries
Investors and analysts paul.sharma@costain.com
Paul Sharma, Costain +44 (0) 7867 501188
Financial media - Headland costain@headlandconsultancy.com
Andy Rivett-Carnac +44 (0) 7968 997 365
Charlie Twigg +44 (0) 7946 494 568
--------------------------------
Notes to editors
Costain helps to improve people's lives by creating connected,
sustainable infrastructure that enables people and the planet to
thrive. We shape, create and deliver pioneering solutions that
transform the performance of the infrastructure ecosystem across
the UK's transport, energy, water, and defence markets.
We are organised around our customers anticipating and solving
their challenges and helping to improve performance. By bringing
together our unique mix of construction, consulting and digital
experts we engineer and deliver sustainable, efficient and
practical solutions.
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END
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