Qinetiq secures early refinancing to aid growth during defence spending cuts

DEFENCE technology group QinetiQ said yesterday it has completed the early refinancing of its £275m credit facility to help the firm advance amid looming cuts to government defence budgets and an ongoing restructuring.

FTSE 250-listed QinetiQ has renewed the revolving facility, which was due to mature in August 2012, with a syndicate of banks made up of Barclays, HSBC, RBS, Bank of America, JP Morgan Cazenove and UBS.

QinetiQ chief executive Leo Quin said in a statement: “The early re-financing of QinetiQ’s credit facility demonstrates the improved strength of the Group’s balance sheet and marks another important milestone in our self-help programme.”

QinetiQ said in its interim management statement last week that its principal markets on both sides of the Atlantic have remained under pressure thanks to government efforts to reduce deficits.

The firm is also mid-way through a two-year “self-help” programme designed to streamline the business following an annual loss in 2009 / 10.