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RHI Magnesita refinances with new EUR 306.5m term loan
Refractory products, systems and services provider RHI Magnesita has signed an agreement to refinance its existing facilities with a new 305.6m, five-year term loan, with an initial cost of Euribor + 75 basis points, it announced on Thursday.
The FTSE 250 company said the new term loan replaced the existing 477.2m syndicated term and revolving loan agreement executed in July last year, for which only 266.5m had been drawn down.
It said it expected the loan to be disbursed in 30 days, subject to certain standard conditions precedent.
"The refinancing extends the final maturity of the term loan by one year, from June 2022 to June 2023, and allows the company flexibility to pursue further balance sheet and funding cost synergies," the RHI Magnesita board said in its statement.
"Following the refinancing, RHI Magnesita will continue to have ample liquidity and cash flows to meet its short term obligations, including the outflow in connection with the integrated tender offer for the minority shares of Magnesita Refratários."
The company said the initiative was in connection with its focus on strengthening its financial position, improving free cash flow and reducing its interest expenses.