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EMS firm Neways Electronics International N.V. has reached an agreement with ING and ABN AMRO concerning the refinancing of the company. The new credit facility of €57.5 million in total replaces the three-year facility with ING and ABN AMRO set to expire mid-2017.
The new group facility expires 31 October 2018, with a one-year extension option. The facility consists of a long-term loan of €5.0 million and a current account facility that has been expanded with €17.5 million to €52.5 million. The facility provides for a €5.0 million repayment of the long-term loan before 1 October 2017.
With the new agreement, equity is to reach at least €50.0 million in 2016 and €55.0 million in 2017 and 2018. Additionally, EBITDA over the last twelve months (LTM) should be at least €10.0 million. The old agreement included conditions for a minimum solvability of 35% and a maximum net debt/EBITDA of 3.0. Pledging requirements practically remain unchanged.
"This new and broader group facility with more favourable conditions provides sufficient strength and flexibility in the covenants to pursue our growth strategy and operational improvement programme going forward. Additionally, this new agreement assures Neways a financing structure that fits the characteristics of our Company and on balance results in lower interest expenses," said Paul de Koning, CFO.