LONDON (ShareCast) - (Sharecast News) - Refractory products, systems and services supplier RHI Magnesita announced the successful syndication of a new unsecured $600m, five-year term loan and multi-currency revolving credit facility with a syndicate of 10 international banks on Monday.
The FTSE 250 firm said the initial margin on the term loan was 100 basis points, and 75 basis points for the revolving credit facility.

It said the proceeds of the new facility would be used to redeem the entire amount of the outstanding Magnesita Perpetual Bonds, and prepay other short-term facilities, which would reportedly generate "significant" interest expense savings.

"The new term loan and revolving credit facility moves RHI Magnesita into an investment grade-style capital structure, further extends our amortization profile, increases our liquidity and allows the company flexibility and strength to pursue its long-term strategy," the board said in its statement.

"The facility was financed by a combination of new and historic relationships, which now compose our core banking group and provides diversified global support across all geographies where RHIM is present."

It said the initiative was in connection with company's focus on strengthening its financial position, improving free cash flow and reducing its interest expenses.

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