Plastics Capital (AIM: PLA), the niche plastics products group, announces that further to the Company’s announcement on 7 March 2013, the Acquisition of Shengli Printing Science and Technology Co, Ltd is now complete.
The Company also announces that it has signed a new £10.5 million committed banking facility with Barclays Bank plc (“Barclays”). The new facility has a final maturity date of March 2018 and has been structured by means of a £5 million revolving credit facility and £5.5 million amortising term loan.
This will replace the existing facility with Barclays that was due to mature in June 2015, thereby extending the Group's debt arrangements by nearly three years.
Commenting, Faisal Rahmatallah, Executive Chairman, said: "We are delighted to announce the completion of the Shengli transaction and this refinancing with Barclays. The Shengli acquisition gives us a strong platform in China from which we can develop further. The new banking facility reduces the cash flow required to service our debt, pushes out any need for refinancing until 2018 and lowers our interest costs. All of these factors provide us with considerably more financial flexibility to facilitate continued investment and growth in shareholder value over the next few years.”