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Interdean.Interconex is delighted to announce that it has successfully entered into binding agreements with its key financial stakeholders which will enable the implementation of a fundamental balance sheet restructuring and the establishment of new long-term debt facilities.
12/11/2004
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The restructuring significantly reduces the Company's debt burden, secures the Company's ongoing financial stability and therefore enables the management team to focus on the continuing development and growth of the business. The restructuring provides for the conversion of £160m of debt into equity, thereby reducing the Company's total term debt by over 80%, from £190m to £30m. In addition a new working capital facility has been made available whilst local mortgage debt facilities have remained in place. As part of the restructuring, the Company has also entered into new senior debt facilities which mature in December 2009, and which do not require any principal repayment until 2007, providing the management team with the headroom and flexibility to focus on the strategic development of the Company. Under the terms of the restructuring, the Company's banks, including the Royal Bank of Scotland, assume a 70% equity interest in the Company, further demonstrating their support for the management team and the ongoing strategy for the business. Over recent months a number of financial institutions, including JPMorganChase in London, have acquired a portion of the Company's bank debt with a view to holding a significant equity interest following the restructuring. The support of these new investors signifies their confidence in the future of the Company and the strategy being undertaken by the management team. The restructuring will be formally approved by shareholders at an Extraordinary General Meeting on 7 December, with 93% of shareholders having already agreed to vote in favour of the required shareholder resolutions which require only 75% approval.
Michael Smith, CEO of Interdean.Interconex says "The stabilisation of both the capital and ownership structure plays an essential part in securing the long-term future of the Company and these agreements will enable us to continue to focus on delivering a global, high quality, value for money service to our many valued clients. It follows the successful repayment of some £40 million of debt we have made over the last few years. We have also been making further improvements in the management and operation of the Group and have now created a firm foundation for further strategic development of Interdean.Interconex."
Jonathan Trower, Director of Close Brothers Corporate Finance Ltd says "We are pleased to have been able to work with the Company on this transaction which secures the Company's capital structure and provides a new, supportive shareholder base."
Enquiries Michael Smith, CEO +44 (20) 8961 4141 Interdean Group Limited Jonathan Trower, Director +44(20) 7655 3100 Close Brothers Corporate Finance
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