Volution Group plc Refinancing of Banking Facilities (9406E)
16 February 2015 - 6:01PM
UK Regulatory
TIDMFAN
RNS Number : 9406E
Volution Group plc
16 February 2015
For immediate release: Monday, 16 February 2015
Volution Group plc
Refinancing of Banking Facilities
-- New GBP90 million four year banking facilities
-- Significant interest cost reduction and an increase in flexibility
-- Supports acquisition strategy and organic growth
Volution Group plc ("Volution" or the "Group", LSE: FAN) a
leading supplier of ventilation products to the residential
construction market, today announces the signing of a new, enlarged
GBP90 million multi-currency revolving credit facility with HSBC,
Royal Bank of Scotland and Danske Bank, maturing 30 April 2019.
This new facility is provided under standard Loan Market
Association terms and replaces the Group`s existing facilities
which were due to expire in February 2018 and February 2019. It
significantly reduces Volution's interest costs and increases the
flexibility and headroom of its banking arrangements.
The new facility is provided at a lower interest rate than the
facilities being refinanced and covenant testing has been improved.
The effective financing cost will reduce by circa. 90 basis points
and our gross debt will reduce by approximately GBP12 million, at
the time of refinancing, allowing us to manage our cash and
borrowings more efficiently.
Ronnie George, Chief Executive Officer, commented:
"The refinancing strengthens our financial position, helping to
underpin the Group's strategy to grow, both organically and through
selective acquisitions. The terms of the new facility reflect the
banks' confidence in the Group's strategic prospects and credit
quality."
The Company will announce its half-year results for the six
months ended 31 January 2015 at 7.00 am (GMT) on 23 March 2015.
-Ends-
Enquiries:
Volution Group plc
Ronnie George, Chief Executive Officer +44 (0) 1293 441501
Ian Dew, Chief Financial Officer +44 (0) 1293 441536
Brunswick +44 (0) 20 7404 5959
volution@brunswickgroup.com
Craig Breheny, Simone Selzer, Chris Buscombe
Note to Editors
Volution Group plc (LSE: FAN) is a leading supplier of
ventilation products to the residential construction market in the
UK, Sweden and Germany.
The Group sold approximately 20 million ventilation products and
accessories in the financial year ended 31 July 2014. It consists
of five key brands, focused primarily on the UK, Swedish and German
ventilation markets - Vent-Axia, Manrose, Fresh, PAX and inVENTer -
and operates through two divisions: the Ventilation Group, which
principally supplies ventilation products for residential
construction applications in the UK, Sweden and Germany and
ventilation products for commercial construction applications in
the UK; and OEM (Torin-Sifan), which supplies motors, fans and
blowers to OEMs of heating and ventilation products for both
residential and commercial construction applications in Europe.
For more information, please go to:
http://www.volutiongroupplc.com/
Cautionary statement regarding forward-looking statements
Certain statements made in this announcement may be
forward-looking statements. Such statements are based on current
expectations and assumptions and are subject to a number of known
and unknown risks and uncertainties that may cause actual events or
results to differ materially from any expected future events or
results expressed or implied in these forward-looking statements.
Persons receiving this announcement should not place undue reliance
on forward-looking statements. Unless otherwise required by
applicable law, regulation or accounting standard, the Group does
not undertake to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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