Invensys completes refinancing of bank facilities

Invensys plc announces that it has signed a new £400 million multicurrency credit facility which replaces the banking facilities put in place during the 2006 Refinancing.  The new facility is for a term of five years and is available for drawdown as loans, letters of credit or guarantees.

The main features of the new facility are as follows:

• Arrangers were HSBC Bank plc, Lloyds TSB Bank PLC and The Royal Bank of Scotland plc.
• Borrowers are Invensys plc and certain subsidiaries.
• It contains customary covenants in relation to financial ratios.
• Acquisitions are permitted up to £100 million per annum in aggregate; in addition, the proceeds from certain disposals may also be used for acquisitions. 
• Interest charged at LIBOR plus 2.0% for the first twelve months, and then at a rate based on balance sheet leverage.
• Dividends are allowed provided they are paid out of the previous year’s free cash flow; this restriction does not apply if the Company has investment grade rating.

Ulf Henriksson, Chief Executive of Invensys plc, commented:

“This new facility meets our anticipated financing requirements for the foreseeable future and creates additional flexibility as we position ourselves for growth.  In particular it allows us to make more bolt-on acquisitions to strengthen Process Systems and Rail Group.  I would like to thank our banks for their strong support in achieving this further milestone for Invensys.”