Chemring strengthens balance sheet

20th Nov 2009 07:01

Weapons group Chemring has completed a private placement of fixed interest loan notes.The company has raised $280m through the issue, which has been taken up by a number of institutional investors.$80m of the loan notes will mature in November 2016, and the remainder will mature in November 2019.The blended interest rate is in the region of 5.5%, which, the group noted, is a rate more favourable than its current lending facilities.The funds from the issue will cover the acquisition of Hi-Shear Technology, and will also be used to repay existing short and medium term debt, as well as providing additional working capital.‘The strengthening of our balance sheet following the issue of the new loan notes will give us greater flexibility as we continue to pursue our growth strategy,’ said Paul Rayner, finance director of Chemring.