RIG MAKER Lamprell yesterday said that it has secured an agreement with five banks to refinance $181m (£115m) of existing debt.
The new facility is with a reduced number of lenders and “significantly simplifies the company’s lending structure,” Lamprell said.
The Aim-listed firm has been working to turn around its business since it was landed with a £2.4m fine from the Financial Services Authority (FSA) in March. The former City watchdog lambasted Lamprell for failing to keep investors abreast of its worsening financial position last year.
The refinancing comprises a $100m term loan, a $60m term loan and a $21m revolving credit facility, all due June 2016, with an average interest rate of 6.7 per cent.
“This has been achieved as a result of the positive support from our key relationship banks and is welcome at a time when the company is focusing on its core business areas and is looking to grow based on its competitive advantage in the market,” said CFO Frank Nelson about the new facility.
Malcolm Graham-Wood, analyst at VSA Capital, said yesterday that he remains “very happy with Lamprell as a recovery play and this is another building block in that recovery”.
Lamprell’s share price closed 2.6 per cent up at 146.25p.