McBride (the group), a European manufacturer and supplier of private products for the household and personal care market, refinanced its credit facility to lower the cost of its debt financing by approximately £2 million ($255 million) a year.
The group has secured replacement banking facilities from a panel of international banks and using these increased facilities will repay its U.S. private placement notes (USPP).
In addition, the group’s existing €140 million ($158 million) multi-currency revolving credit facility has been increased to a five-year €175 million ($197 million) facility with a maturity of June 2022. The facility includes a €75 million ($84 million) uncommitted accordion feature will provide additional facilities for potential future acquisitions.
The bank facilities were provided by a syndicate of HSBC, KBC, Bayern, BNP Paribas and Barclays.
The existing $50 million 5.51%1 2020 USPP and $40 million 5.38%1 2022 USPP will be repaid in full by drawing on the increased RCF.
Under the terms of the USPP arrangements, the group will pay a ‘make-whole’ payment to existing USPP note-holders of approximately £11 million ($14 million). At the same time the group will close out the Euro/Dollar cross-currency interest rate swaps relating to the existing USPP notes which have a current mark-to-market net value of approximately £11 million ($14 million) in favor of the group.