Rexam in 860m debt refinance

In a brief stock market announcement yesterday, Rexam said that it had completed a refinancing of a £775m revolving credit facility and a number of smaller arrangements that were due to mature next year.

Under the new debt structure, the FTSE-listed company will have £860m of debt facilities that mature in the second half of 2012.

This includes £647m of what are known as syndicated forward start commitments. Under such agreements, lenders agree to extend existing loans at when they mature in return for increased fees.

Some £213m of loans have been agreed as bilateral commitments.

In an interim management statement in May, Rexam revealed that its net debt was £2.7bn and said that it was already in negotiations over the £775 revolving credit facility.

News of the Rexam’s rejig comes in the same week that Birmingham-based Linpac Group said that it was in talks over refinancing its debt.

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