Survitec is pleased to announce that today it has signed agreements to support a comprehensive recapitalisation of the group (encompassing the binding lock-up, equity and debt term sheets) with a group of its main lenders, accounting for a significant majority of its debt. This is a significant milestone in the process of transforming the business, enabling it to succeed in the future.
Key terms in the lock up agreement are as follows:
- Debt reduced by c.80%
- Committed new money facilities of up to £75 million
- To be implemented via a scheme of arrangement if 100% lender consent not forthcoming
- Final closing will occur after the execution of detailed documentation and receipt of all necessary regulatory approvals
Following the recapitalisation and pending the necessary regulatory approvals it is expected that M&G Investments and Searchlight Capital Partners will each hold at least 30% of Survitec’s equity.
These agreements are the first step in the process to implement the recapitalisation of the business and the transition of ownership of the group to its lenders. The recapitalisation will be implemented between now and the end of January, subject to various regulatory approvals. Once implemented the agreements will deliver a fundamental strengthening of the Group’s balance sheet and provide an injection of new money to fund the management team’s business improvement plan.
Completion of the recapitalisation will better position Survitec for future growth to the benefit of its customers, suppliers and employees.