JP Morgan Private Equity Limited (JPEL) has agreed in principle to terms on a new multi-currency credit facility with a longer maturity date with Lloyds TSB Bank plc.
The new facility will expire in January 2017 and contains similar covenants to the Company’s existing $150 million multi-currency facility which was due to expire in May 2013. Key terms of the proposed facility include:
LIBOR +280bps for a loan to value ratio (LTV) of less than or equal to 10%, with no LIBOR floor
LIBOR +330bps for a LTV ratio of greater than 10%, with no LIBOR floor
"We continue focus on the optimisation of our capital structure,” says Trevor Ash, JPEL’s Chairman. “This proposed facility will provide JPEL with increased financial flexibility to support its strategic initiatives over the next several years.
“Moreover, extending the credit facility through 2017 will be an important milestone for JPEL. The Directors believe that the proposed refinancing will benefit the Company by allowing JPEL to focus on creating shareholder value while simultaneously representing the first step to clarifying the long-term capital structure.”
The amended and extended credit facility is subject to final documentation and is currently expected to be completed in May. Furthermore, the Company anticipates that it will hold its annual general meeting on or about the end of June with materials available to shareholders on or about the end of May.
