REG - Volex PLC - New enlarged debt facilities to support growth

VolexAnnouncement

14/02/2022 07:00

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RNS Number : 5058B  Volex PLC  14 February 2022

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulations

 

Volex plc

("Volex" or the "Company")

 

New, enlarged debt facilities support ongoing growth plans

 

Volex plc (AIM:VLX), the global integrated manufacturing and power product
specialist, announces it has successfully completed a refinancing with a
syndicate of five banks, replacing its existing $100 million revolving credit
facility with a new $200 million committed facility (the "Facility") together
with an additional $100 million uncommitted accordion (the "Accordion").

The Facility has an initial maturity date of February 2025, with two one-year
extension options. It is structured as a $125 million revolving credit
facility and a $75 million term loan. The Facility has a borrowing cost at the
Company's current leverage levels of 200 basis points over SOFR, compared to
230 basis points over the aggregate of SOFR plus a credit adjustment spread
under the prior facility. The Facility also benefits from more relaxed
financial covenants to provide increased flexibility to accommodate future
acquisitions.

The Facility and the Accordion will provide Volex with additional liquidity to
support Volex's ambitious growth strategy, based on further investment in
attractive organic and inorganic growth opportunities.

Jon Boaden, Chief Financial Officer of Volex, commented:

 

"We are pleased to have enlarged our credit facilities at an improved margin,
reflecting the strength of support from our relationship banks and their
confidence in our strategy, business model and long-term growth plans. The
Facility will provide us with additional liquidity and improved flexibility to
invest in high-growth organic opportunities, as well as further acquisitions,
where we have a strong and demonstrable track record of value creation.

 

The new facilities also strengthen our ambitions to deliver sustainable growth
as we continue to perform robustly, successfully navigating the current supply
chain challenges while demonstrating our ongoing ability to pass through
inflationary cost increases."

 

-Ends-

 

For further information please contact:

Volex
plc
                                  +44 (0) 7747 488785

Nat Rothschild, Executive Chairman

Jon Boaden, Chief Financial Officer

Julian Wais, Head of Investor Relations

Singer Capital Markets - Nominated Adviser & Joint Broker
   +44 (0)20 7496 3000

Shaun Dobson

George Tzimas

HSBC Bank plc - Joint
Broker                                                                        +44
(0)20 7991 8888

Simon
Alexander

Joe
Weaving

Powerscourt - Media Enquiries
                                   +44 (0)20 7250 1446

James
White

Ollie Head

 

About Volex

Volex plc (AIM:VLX) is a global leader in integrated manufacturing for
performance-critical applications and a supplier of power products. We serve a
diverse range of markets and customers, with particular expertise in cable
assemblies, higher-level assemblies, data centre power and connectivity,
electric vehicles, and consumer electricals. We are headquartered in the UK
and operate from 20 manufacturing locations with a global workforce of over
6,900 employees across 22 countries. Our products are sold through our own
locally based sales teams and through authorised distributor partners to
Original Equipment Manufacturers ('OEMs') and Electronic Manufacturing
Services ('EMS') companies worldwide. The products and services that we offer
are integral to the increasingly complex digital world in which we live,
providing power and connectivity from the most common household items to the
most complex medical equipment. For more information, please
visit www.volex.com (http://www.volex.com/)

 

 

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