Doncasters secures $1.2 billion refinancing deal

(UK)  —  The Doncasters Group (“Doncasters”), the global precision engineering group, announced 10 April 2013 that it has successfully completed the refinancing of its whole $1.2 billion lending structure, providing the company with more favourable terms and a stronger financial footing to support long-term growth. The refinancing reduces Doncasters’ cost of debt significantly, with around £8 million of annual interest savings, and it extends the debt maturity profile of the company by 3-5 years.

The new financing comprises:

  • $876 million first-lien term loans, maturing 2020
  • $290 million second-lien term loans, maturing 2020
  • £110 million working capital facility, maturing 2018

Tariq Jesrai, Chairman and Chief Executive Officer of Doncasters, said:

“I am very pleased to announce this hugely successful transaction, which represents one of the largest refinancings of its kind in recent years and underlines the fundamental strength of the business. The new structure is covenant light and allows us the flexibility to realise our ambitious growth targets and when combined with our strong financial performance, it provides us with a sound platform from which to achieve our full potential. We are now ideally positioned to focus on driving further operational performance, to the benefit of our customers, employees and shareholders.”

Following completion of the refinancing, Doncasters has a strong liquidity position, with over £35 million of cash in addition to the £110 million working capital facility.

The new facilities order book comprises 55 lenders, with a number of large blue-chip institutions.

In 2012, Doncasters reported EBITDA of £118 million, up from £106 million in 2011 and £104 million in 2010. The company reported sales in 2012 of £741 million, compared to £745 million in 2011 and £673 in 2010.

The bookrunners for the transaction were Credit Suisse, Bank of America Merrill Lynch and JP Morgan.


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