REG - Renold PLC - Extension of banking facilities

RenoldAnnouncement

09/05/2023 07:15

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RNS Number : 6419Y  Renold PLC  09 May 2023

9 May 2023

 

Renold plc

("Renold", the "Company" or the "Group")

 

Extension of banking facilities

 

 

Renold, a leading international supplier of industrial chains and related
power transmission products, is pleased to announce it has reach agreement for
the extension of its core banking facilities that were due to mature in April
2024.

 

The new, £85.0m multi-currency revolving credit facility, will be increased
from the previous level of £61.5m. Additionally there is a £20.0m accordion
option which will allow the Company to access additional funding in support of
its acquisition programme as part of the Group's STEP2 strategy.

 

The new facilities will be provided by our existing banks HSBC, Allied Irish
Bank (GB) and Citibank with the addition of Santander and are initially for a
three year term, to May 2026, but contain an option to extend the term for a
further two years.

 

The principal facility term, the Net Debt / EBITDA covenant, will be extended
from the previous level of 2.5 times EBITDA to 3.0 times EBITDA, with other
key terms remaining unchanged.

 

Commenting, Robert Purcell, Chief Executive of Renold, said:

 

"We are delighted to announce we have reached agreement to extend our banking
facilities, which will provide a stable financing platform to support the
continued strategic development of the Group over the next few years.

 

"As part of the facility extension, we welcome a new lending partner to the
syndicate which complements Renold's extensive geographic reach and can help
support our operations across the world."

 

 

ENQUIRIES:

 

 Renold plc                           IFC Advisory Limited
 Robert Purcell, Chief Executive      Tim Metcalfe
 Jim Haughey, Group Finance Director  Graham Herring
                                      renold@investor-focus.co.uk (mailto:renold@investor-focus.co.uk)

 0161 498 4500                        020 3934 6630

 

 

 Nominated Adviser and Joint Broker  Joint Broker
 Peel Hunt LLP                       FinnCap Limited
 Mike Bell                           Ed Frisby (Corporate Finance)
 Ed Allsopp                          Andrew Burdis / Harriet Ward (ECM)

Graham Cooke (Debt Advisory)

 020 7418 8900                       020 7220 0500

 

NOTES FOR EDITORS

 

Renold is a global leader in the manufacture of industrial chains and also
manufactures a range of torque transmission products which are sold throughout
the world to a broad range of original equipment manufacturers and
distributors. The Company has a well-deserved reputation for quality that is
recognised worldwide. Its products are used in a wide variety of industries
including manufacturing, transportation, energy, steel and mining.

 

Further information about Renold can be found on the website at:
www.renold.com (http://www.renold.com)

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