UPDATE: Senior agrees on new £60m bank loan

7th Oct 2011 07:47

Senior, the FTSE 250 manufacturing firm working in the aerospace, diesel-engine, exhaust system and energy markets, has agreed a new five-year £60m revolving credit facility maturing in October 2016.The agreement includes an additional uncommitted £20m accordion facility which allows it to expand its loan if needed. The new facilities replace the existing, currently undrawn, £80m revolving credit facility which was due to expire next July."Given the ongoing uncertainty in the financial markets, it is pleasing to report that the new facility secures the Group's funding requirements for the foreseeable future.  Senior remains strongly cash generative," said chief executive Mark Rollins.Evolution Securities analyst Guy Brown said, "As civil aerospace suppliers continue to consolidate (at a larger scale we have seen UTC bid for Goodrich, and Meggitt buy Pacific Scientific this year), Senior has the firepower to make accretive acquisitions."Total committed borrowing facilities after this transaction amount to £191m with a weighted average maturity of 5.3 years.BC