Debt refinancing
James Cropper plc has successfully refinanced its debt facilities, securing a more flexible funding platform to support its strategic objectives. The new arrangements include an invoice discounting facility of up to £15 million for at least three years, enhancing working capital and liquidity management. A £7.1 million repayment on the UK bank loan will be made from existing cash and the new facility, with the remainder repaid in quarterly instalments until March 2030. The maturity of the US bank loan has been extended by 12 months, deferring a $3.2 million repayment to December 2027. Additionally, the company will make a one-off £0.6 million contribution to its defined benefit pension schemes, with future contributions reduced by £0.35 million and the next actuarial valuation brought forward to March 2027. These changes are expected to improve liquidity, financial flexibility, and reduce cash financing costs.
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James Cropper plc (AIM: CRPR), the Advanced Materials and Paper & Packaging group, is pleased to announce the completion of a refinancing of its debt facilities. This refinancing provides the Group with a more flexible funding platform to support delivery of its medium-term strategic priorities.
The new arrangements improve the Group's cash flow and balance sheet flexibility through access to a new invoice discounting facility of up to £15m committed for at least three years, which provides flexible working capital funding to enable more efficient management of the Group's liquidity.
As part of the refinancing, the Group will make a part-repayment of £7.1m on its existing UK bank loan, funded from the Group's cash resources and the new invoice discounting facility, with the remaining balance repayable in reduced quarterly instalments through to March 2030.
In addition, the maturity of the Group's US bank loan has been extended by 12 months, with the final repayment of $3.2m deferred to December 2027, improving liquidity headroom during this period.
Alongside the debt refinancing, the Group has agreed to make a one-off contribution into its defined benefit pension schemes of £0.6m, with the previously agreed contribution schedule reduced by £0.35m in aggregate across the period to September 2027. In addition, the Group has agreed to bring forward the next triennial actuarial valuation of the pension schemes by 12 months to March 2027.
Andrew Goody, Chief Financial Officer, said: "This refinancing builds on the significant progress we have made in strengthening the Group's balance sheet through improved operational performance and continued focus on cash and working capital management, with net debt at 28 March 2026 less than 1x adjusted EBITDA.
"The refinancing materially improves our liquidity and financial flexibility. By improving access to committed working capital funding and extending the maturity profile of our debt, the new arrangements provide greater headroom to support both operational requirements and strategic growth initiatives.
"Importantly, the refinancing allows us to deploy capital more efficiently, which we expect will allow the Group to reduce cash financing costs. I am grateful to our lending partners for their continued support and to HSBC Invoice Finance for helping deliver this important enhancement to our funding structure."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.