On 25 July 2017, the Group signed a new Credit agreement refinancing its previous £205.0 million Revolving Credit Facility (RCF). The new committed facilities are a new five year multi-currency RCF with two one year extension options for £235.0 million through seven banks: HSBC, BNP Paribas, Fifth Third, Santander, Lloyds, Bank of Ireland and Raiffeisen. The RCF has an Accordion facility of a further £125.0 million.
There are two covenants governing the RCF:
- Leverage: Net Debt to underlying EBITDA not greater than 3:1
- Interest cover: underlying EBITDA to Net Finance Charges not less than 4:1
There is a non-utilisation fee of 35.0% of the applicable margin. The margin over LIBOR (or equivalent) ranges from 1.3% for gearing below 1 time, up to 2.2% for gearing above 2.5 times.
Following the refinancing, the existing capitalised arrangement fees of £0.4 million will be accelerated to the income statement.