Refinancing and Redemption
16 Janvier 2004 - 8:00AM
UK Regulatory
RNS Number:3000U
Filtronic PLC
16 January 2004
Filtronic plc: Refinancing and
Redemption of US$74m of 10% Senior Notes due 2005
Filtronic plc ("Filtronic" or "the Group"), a leading designer and manufacturer
of customised microwave electronic subsystems for the wireless
telecommunications and defence industries, announces that it has completed a
refinancing of the Group's 10% Senior Notes ('the Notes') due 1 December 2005
with Barclays Bank PLC and HSBC PLC, with whom it has entered into a #50m Term
Loan Facility.
The proceeds will be used to redeem all of the outstanding $74m of the Notes and
to refinance #10m of short term bank debt which Filtronic utilised on 1 December
2003 to repurchase US$16.033m of the Notes. Under the terms of the Notes, the
redemption price will be $1025 per $1000 of the initial principal amount.
The Term Loan's flexible capital repayment schedule provides that a minimum of
#6m is repaid by 31 May 2005, a minimum of #17m by 31 May 2006 and a minimum of
#23m by 28 February 2007, leaving a maximum final payment of #27m to be made on
31 May 2007.
The interest rate will not exceed 225 basis points over LIBOR, currently
approximately 4%, with reductions in the margin to 150 basis points achievable
on certain financial performance criteria.
The Term Loan will be secured by a fixed charge over the Group's freehold
properties in the United Kingdom and a floating charge over the Group's other
United Kingdom assets.
Additionally, the Group will have overdraft and other short-term bank borrowing
facilities totalling approximately #9m available.
Commenting, Professor J David Rhodes CBE FRS FREng, Executive Chairman of
Filtronic, said: "This refinancing consolidates our borrowings under one
umbrella. It reduces our cost of debt substantially and extends our term of
borrowing whilst enabling us to continue to reduce our debt progressively."
This announcement supports the formal notice of redemption (RNS number: 2997U).
ENDS
Filtronic plc
Professor J David Rhodes CBE FRS FREng (Executive Chairman) 01274 530622
John Samuel (Financial Director) 01274 530622
Binns & Co PR Ltd
Peter Binns/Paul McManus 020 7786 9600
Editor's Note
The redemption follows the disposal for US$12m of certain assets of the group's
Filtronic Solid State business, in Santa Clara, California to Teledyne Wireless
Inc., a wholly-owned subsidiary of Teledyne Technologies Incorporated, announced
on 17 December 2003.
Filtronic's Interim Results for the six months ended 30 November 2003, will be
announced on Monday 2 February 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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