Refinancing Announcement
25 February 2010
25 February 2010
Fiberweb plc
(“the Company”)
Refinancing Announcement
Fiberweb plc, the leading international nonwoven fabrics producer, is today announcing a refinancing of its $400 million loan facility, which was due to expire at the end of its original five-year term in October 2011.
A new loan facility of £210 million has been agreed with a term in excess of 3 years, maturing on 31st July 2013. Margins on drawings under the new facility are higher than the existing facility, in line with current market pricing. The Directors expect that as a result, cash interest costs will increase by £3 million in 2010 over previous expectations. In addition, there will be non-cash amortization charges of £3 million in each of 2010 and 2011 arising on the closure of interest rate swaps relating to the existing facility.
New swaps will be taken out relating to the new facility reflecting both the lower market rates currently prevailing and the cost of closing out the existing hedges. The new facility contains improved gearing and interest cover covenants consistent with the positive developments in Company performance.
This announcement is made ahead of preliminary results for the twelve month period ending 31 December 2009, which are expected to be announced on 4th March 2010.
-ENDS-
For further information, please contact:
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Fiberweb plc
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0208 439 8594
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Daniel Dayan, Chief Executive
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Daniel Abrams, Chief Financial Officer
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Weber Shandwick Financial
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0207 067 0700
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Terry Garrett / Nick Dibden / Katie Matthews
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