Banking facilities update
| 1st Apr 2009|
Plastics Capital plc (AIM: PLA), the acquisitive niche plastics products group, is pleased to provide an update on an agreement reached with its bankers, Royal Bank of Scotland ("RBS"), in relation to the banking facilities that RBS currently provides to the Company.
Some minor amendments to these facilities have been agreed in order to provide the Company with greater covenant and cash headroom over the next 12 months, as bank debt is repaid.
These amendments were considered prudent given the significant volatility of sterling in recent months and the impact that this volatility could have on covenant calculations and short term hedging costs, at a time when trading conditions, as indicated on 19 February 2009 have been, and may continue to be difficult. The costs associated with amending these facilities were not significant.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"The amendments to our banking facilities now agreed with RBS provide us with greater flexibility over the next 12 months. We are pleased with the ongoing support provided to the Group by RBS. The need for relatively minor amendments and our ability to secure them emphasises the underlying strength of our businesses."