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Biffa plc (BIFF)

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Thursday 28 March, 2019

Biffa plc

Announcement of New Revolving Credit Facility

RNS Number : 2532U
Biffa plc
28 March 2019
 

Biffa plc

 

28 March 2019

 

     Announcement of New Revolving Credit Facility

 

Biffa plc ("the Group"), the UK's leading integrated waste management company, is pleased to announce a new unsecured £350m Revolving Credit Facility ("RCF") with a consortium of banks.

The RCF is a five-year facility, expiring in March 2024, with an option to extend for up to a further two years to March 2026. This facility replaces the existing RCF and Term loan facilities ("existing facilities"), which were due to expire in July 2021.

The RCF will provide the Group with a lower average cost of debt, an increased maturity profile and improved covenants. This new facility will ensure significant financing flexibility to enable the Group to pursue its strategic objectives, capitalising on the synergistic consolidation opportunities across the I&C waste collection market and the ongoing development of infrastructure in waste and recycling.

The refinancing will result in margin savings for the Group of around £2.5m per annum. Unamortised arrangement fees of £3.8m, relating to the existing facilities will be written off within non-underlying exceptional charges in the FY19 results.

Richard Pike, Chief Financial Officer of Biffa plc commented, "We are delighted to have refinanced our core bank facility and further diversified our lending group.  Together with our finance lease facilities, we now have just under £500m of committed facilities. Leverage continues to remain broadly constant at around 2.0x Net Debt : EBITDA, despite ongoing investment for future growth and after taking into account the recent acquisition of SWR Newstar." 

 

Enquiries:




Investors and Analysts:


Richard Pike, Chief Financial Officer

[email protected]



Media:


Houston PR

T: +44 (0) 20 7701 7660

Kate Hoare / Alexander Clelland / Laura Stewart

[email protected]   

 

 

About Biffa

 

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with Biffa's business. Whilst Biffa believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Biffa's control or within Biffa's control where, for example, Biffa decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements.

Biffa is a leading UK-based integrated waste management business. The Group operates across the breadth of the waste management value chain, including the collection, treatment, processing and disposal of waste and recyclable materials, as well as related work in the production and sale of energy derived from waste and the sale of recovered commodities such as paper, glass, metals and plastic. Biffa's customer base for these services includes local authorities (which includes the collection of waste from households), large corporates and SMEs, and purchasers of end-product commodities and energy. The Group's services are organised across four operating divisions: Industrial & Commercial; Municipal; Resource Recovery & Treatment (RR&T); and Energy. In FY 2018, the Group's total revenue was £1,076.7 million and its Underlying EBITDA was £150.0 million. Biffa was admitted to trading on the London Stock Exchange's main market for listed securities in October 2016 under the ticker "BIFF".

 

For more information visit www.biffa.co.uk 

 

 


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