McBride refinances with EUR 200m credit facility
By Josh White
Date: Friday 29 Nov 2024
(Sharecast News) - McBride has successfully refinanced its banking facilities, it announced on Friday, securing a €200m revolving credit facility (RCF) with a four-year maturity and the option to extend by up to two years.
The London-listed consumer products maker said the new financing structure also included a €75m uncommitted accordion feature, providing flexibility for future acquisitions or additional funding needs.
It said the terms of the refinancing were a significant improvement over the revised conditions set in September 2022.
Key changes included sliding-scale debt pricing based on biannual debt cover ratio assessments, normalised covenants limited to debt cover and interest cover, and the removal of asset and property security requirements.
Crucially, the block on shareholder distributions had been lifted, enabling McBride to resume dividend payments and consider share buybacks.
Structured as a sustainability-linked financing, the arrangement incorporated updated performance targets aligned with McBride's environmental, sustainability and governance (ESG) strategy.
The facility was arranged by a syndicate of international banks, combining new lenders with existing banking partners who have transitioned into the updated arrangement.
"We are delighted to announce the completion of this refinancing, which provides McBride with a strong financial platform for the coming years," said chief financial officer Mark Strickland.
"The increased un-secured facilities and extended maturity provides the business with flexibility and security as we continue to execute our growth strategy.
"The refinancing secures improved terms and conditions on our borrowing facilities, reflecting the Company's solid financial performance metrics."
Strickland said the removal of the block on shareholder distributions extended flexibility to the business in its capital allocation options.
"We are also particularly pleased that the refinancing maintains the sustainability-linked structure, with enhanced and updated SPTs, underlining our commitment to sustainable business practices."
At 0956 GMT, shares in McBride were up 4.29% at 109.5p.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN