Debt and Liquidity Update
17 September 2020
Debt and liquidity update
Vesuvius plc, a global leader in molten metal flow engineering and technology, releases the following update on its debt and liquidity.
Early redemption of the Bank of England's Covid Corporate Financing Facility (CCFF)
We have elected to repay the debt issued through the Bank of England's Covid Corporate Financing Facility (CCFF) earlier than its March 2021 maturity, as a result of our positive free cash flow generation in recent months and early signs of marginally improving levels of business activity. As a result, yesterday we notified the Bank of England of our intention to repay in full the £200m of debt issued through the CCFF, which we accessed in April 2020 to reinforce our liquidity position.
Early redemption of US$140m US Private Placement (USPP) completed in-line with disclosure in our H1 2020 results
On 27 August, we also repaid the US$140m USPP maturing in December 2020, consistent with the plans disclosed in our 2020 Half Year Results announcement, released on 30 July 2020. The redemption of this USPP was funded by the proceeds of the new USPP of the same size which was issued earlier this year. As a result of this redemption, our debt covenant limit of 3.0x net debt/LTM EBITDA, has increased to 3.25x.
Available liquidity
Our liquidity stood at £416m at the end of August, following both the repayment of the USPP notes and pro forma for the repayment of the £200m CCFF, which will take place in the week commencing 21 September 2020. Following these debt repayments, our liquidity is £41m higher than at the end of February 2020, prior to the Covid-19 crisis impacting our financial results.
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For further information, please contact: |
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Shareholder/analyst enquiries: |
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Vesuvius plc |
Guy Young, Chief Financial Officer Euan Drysdale, Group Head of Corporate Finance Pamela Antay, Head of Investor Relations
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+44 (0) 20 7822 0000 +44 (0) 7584 641315 +44 (0) 7827 802277
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Media enquiries: |
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MHP Communications |
Andrew Jaques/ Ollie Hoare/ Peter Lambie |
+44 (0) 203 128 8100 |
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering and technology, serving process industries operating in challenging high-temperature conditions.
We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce energy consumption. These include flow control solutions, advanced refractories and other consumable products and - increasingly - related technical services including data capture.
We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres.
Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.
Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.
Forward looking statements
This announcement contains certain forward-looking statements which may include reference to one or more of the following: the Group's financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters.
Statements in this announcement that are not historical facts are hereby identified as "forward-looking statements". Such forward looking statements, including, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to Vesuvius, wherever they occur in this announcement, are necessarily based on assumptions reflecting the views of Vesuvius and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements. Such forward looking statements should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements. These include without limitation: economic and business cycles; the terms and conditions of Vesuvius' financing arrangements; foreign currency rate fluctuations; competition in Vesuvius' principal markets; acquisitions or disposals of businesses or assets; and trends in Vesuvius' principal industries.
The foregoing list of important factors is not exhaustive. When considering forward looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in documents the Company files with the UK regulator from time to time including its annual reports and accounts.
You should not place undue reliance on such forward-looking statements which speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Vesuvius undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this announcement might not occur.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02
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