Recall Continues Acquisition Expansion and Increases Loan Facility
November 10 2014 - 5:45PM
Business Wire
To Evaluate Potential Alternative Corporate
Structures to Maximise Shareholder Value
Recall Holdings Limited (ASX: REC), a global leader in document
storage, digital document management and data protection, today
updated the market on the continued progress of its acquisition
strategy and announced the increase of its syndicated loan facility
by $250 million to provide further funding flexibility for the
ongoing execution of its strategy. In addition, the company
announced it is exploring strategies to maximise shareholder value
through alternative corporate structures.
Recall’s focus on accretive acquisitions continues, completing
five acquisitions since the beginning of FY15 — three in the U.S.,
one in Australia and one in the U.K. The combined purchase price is
approximately $31 million and, on a post synergy basis, represents
an EBITDA multiple of less than 7.0x. These acquisitions will
generate annualised revenue of approximately $10 million and add
one million carton equivalents. In FY15, these acquisitions are
expected to add approximately $8 million of revenue. The
acquisition pipeline continues to strengthen and is a key component
of the strategy to accelerate sustainable profitable growth.
Recall’s amended syndicated financing agreement increases its
$800 million loan facility by $250 million, to a total of $1.05
billion. In addition, the facility has been amended to a single
5-year term, with a maturity date of October 2019. The key
covenants under the facility remain unchanged with net debt to
EBITDA of less than 3.5x and EBITDA to net finance costs of not
less than 3.5x.
Recall is exploring, with advisers, potential alternative
corporate structures, including a Real Estate Investment Trust
(REIT) in the United States, in order to maximise shareholder
value. Recall will assess the costs and benefits associated with
implementing various structures. Given the uncertainties associated
with obtaining approvals from the applicable authorities, there can
be no assurances that any structures will be implemented. In
keeping with its continuous disclosure requirements, Recall will
update the market when there are material developments.
About Recall
Recall is a global leader in information management solutions,
offering customers complete management of its physical and digital
information assets with one partner. Recall’s innovative solutions
empower organizations to make better business decisions throughout
the information lifecycle, while keeping regulatory compliance and
eliminating unnecessary resources, time and costs. Recall services
more than 80,000 customer accounts in over 300 dedicated operation
centers, spanning five continents in 24 countries. For more
information, please visit recall.com.
Investors and AnalystsRecall Holdings LimitedBill Frith, +61 2
9582 0244Senior Director, Investor RelationsorU.S. media
enquiriesMSLGROUPDavid Sprague or Amanda Fountain, +1
781-684-0770
Recharge Metals (ASX:REC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Recharge Metals (ASX:REC)
Historical Stock Chart
From Jul 2023 to Jul 2024
