Interserve PLC DELEVERAGING PLAN (8928J)
10 December 2018 - 6:00PM
UK Regulatory
TIDMIRV
RNS Number : 8928J
Interserve PLC
10 December 2018
DELEVERAGING PLAN
Interserve notes the recent press reports regarding plans to
deleverage its balance sheet.
On 23 November 2018, the Interserve Board announced that it is
working with its advisers to look at all options to deliver the
optimum capital structure for the group to support its long-term,
sustainable development.
Interserve and its lenders are engaged in constructive
discussions regarding the agreement and implementation of a
deleveraging plan which would deliver a strong balance sheet with
Interserve targeting leverage of approximately 1.5x net
debt/EBITDA. These discussions also involve proposals to amend the
Group's current financing agreements, including the extension of
the maturity dates and repayment profiles of the existing
facilities.
Although the form of the deleveraging plan remains to be
finalised, it is likely to involve the conversion of a substantial
proportion of the Group's external borrowings into new equity, an
element of which may be sold to existing shareholders and
potentially other investors. If implemented in this form, the
deleveraging plan could result in material dilution for current
Interserve shareholders.
Interserve intends to announce its finalised deleveraging plan,
which would be subject to shareholder approval, in early 2019.
Interserve continues to trade well and in line with its
expectations for the year ending 31 December 2018.
Debbie White, CEO of Interserve, said:
"We are making good progress on our deleveraging plan which we
expect to announce early in 2019. Our lenders are supportive of the
deleveraging plan which will underpin the long term future of
Interserve. Our refinancing in April of this year contemplated the
development of a deleveraging plan in consultation with our
stakeholders and the liquidity injected at that point also gave us
the funding to execute our business plan. Our discussions with our
lenders are a positive step in the process that was agreed as part
of the April refinancing. The Cabinet Office has also expressed
full support for the work we are doing to implement our long term
recovery plan.
The fundamentals of our business remain strong. The deleveraging
plan will give Interserve a strong long term capital structure and
provide a solid foundation on which to build the future success of
the Group."
- Ends -
For further information, please contact:
Tulchan Communications +44 (0) 207 3534200
Martin Robinson
Toby Bates
Lisa Jarret-Kerr
About Interserve
Interserve is one of the world's foremost support services and
construction companies. Everything we do is shaped by our core
values. We are a leader in innovative and sustainable outcomes for
our clients and a great place to work for our people. We offer
advice, design, construction, equipment, facilities management and
frontline public services. Headquartered in the UK and FTSE listed,
we have gross revenues of GBP3.3 billion and a workforce of circa
75,000 people worldwide.
LEI: 549300MVYY4EZCRFHZ09
Website: www.interserve.com
For Interserve news follow: @interservenews
For facilities management updates follow: @INT_FM
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END
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