COMPLETION OF REFINANCING
Northgate plc (“Northgate”, the “Company” or the “Group”) today announces that it has completed a comprehensive refinancing exercise. The refinancing replaces the Group’s legacy high-coupon private placements, institutional loan and multi bank facility with a single new committed multi bank facility.
- £428m committed multi bank facility maturing on 30 June 2017;
- Pricing on the new facility is in line with that on the shorter dated bank facility that it replaces and will lead to a significant reduction in future interest payments;
- Revised covenant package allows the Group increased operational and financial flexibility; and
- Re-sized headroom, being more aligned to the Group’s requirements.
A one off charge of £54m will be reflected in the current year’s income statement, which includes the costs of exiting the legacy debt and hedging, and of arranging the new facility. The related cash impact in the current year will be £39m, including fees of £7m. The Group estimates that had the new facility been in place at 1 May 2012, the cash interest savings would have been in excess of £15m for the year ending 30 April 2013.
Bob Contreras, Chief Executive of Northgate plc, commented:
“The Group has reduced net debt by over £500m since April 2008 and the terms of the new refinancing reflect the improved financial position of the business. The new facility will also significantly reduce our ongoing interest payments, whilst increasing our operational and financial flexibility. The Group remains focused on asset management, cash generation and cost control, whilst seeking to maximise profitable growth where the appropriate return exists.”
Current trading continues to be in line with our expectations. The Group will be announcing its preliminary results for the year ending 30 April 2013 on 25 June 2013.
For further information, please contact:
Northgate plc 01325 467558
Bob Contreras, Chief Executive
Chris Muir, Group Finance Director
MHP Communications 020 3128 8753