LONDON (ShareCast) - (Sharecast News) - Manufacturing and power products specialist Volex announced a refinancing with a syndicate of five banks on Monday, replacing its existing $100m revolving credit facility with a new $200m committed facility and an additional $100m uncommitted accordion.
The AIM-traded firm said the new facility had an initial maturity date of February 2025, with two one-year extension options.

It was structured as a $125m revolving credit facility and a $75m, and had 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 would also benefit from "more relaxed" financial covenants, the board said, to provide increased flexibility to accommodate future acquisitions.

Volex said the facility and the accordion would provide it with additional liquidity to support its growth strategy, based on further investment in organic and inorganic growth opportunities.

"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," said chief financial officer Jon Boaden.

"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."

At 1121 GMT, shares in Volex were down 1.44% at 273p.

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