PRIVATE PLACEMENT OF LOAN NOT

RNS Number : 8215C

Chemring Group PLC

20 November 2009

 



FOR IMMEDIATE RELEASE                                                                                           20 NOVEMBER 2009

CHEMRING GROUP PLC

PRIVATE PLACEMENT OF LOAN NOTES   

Chemring Group PLC ("Chemring" or "the Group") announces that it has completed a $280 million private placement of fixed interest loan notes with a number of institutional investors.  

$80 million of the loan notes will mature in November 2016, and $200 million will mature in November 2019. The total issue carries an interest rate of approximately 5.5%, a more favourable rate than the Group currently enjoys. The proceeds will be used to fund the acquisition of Hi-Shear Technology Corporation, repay existing short and medium term debt, and provide additional working capital facilities for the Group.  

Paul Rayner, Finance Director of Chemring, said:

"This private placement is our second offering, and we are delighted with the response from both existing and new investors. The strengthening of our balance sheet following the issue of the new loan notes will give us greater flexibility as we continue to pursue our growth strategy."   

For further information:

Paul Rayner	Finance Director, Chemring Group PLC	01489 881880
Rupert Pittman	Cardew Group	0207 930 0777

 

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