Interserve PLC Progress on Deleveraging Plan (2086L)
December 21 2018 - 2:00AM
UK Regulatory
TIDMIRV
RNS Number : 2086L
Interserve PLC
21 December 2018
News Release
21 December 2018
Progress on Deleveraging Plan
Following its 9th December 2018 announcement, the Interserve
Board today provides an update on its Deleveraging Plan.
Interserve continues to be in constructive discussions with its
lenders, who are fully supportive of Interserve's business plan and
management team. The key commercial principles on which the
Deleveraging Plan is expected to be based have now been
conditionally agreed between Interserve and all lenders.
In summary:
-- The Deleveraging Plan will deliver a strong balance sheet
targeting leverage of less than 1.5x net debt / EBITDA by the end
of 2019.
-- Debt retained by Interserve will have terms consistent with
the debt of a well-capitalised UK corporate.
-- The Deleveraging Plan includes the conversion of a sufficient
amount of Interserve's senior debt into new Interserve ordinary
shares (the "New Equity") in order for Interserve to achieve its
target leverage.
-- As previously announced, it is anticipated that the issue of
New Equity will result in material dilution for current Interserve
shareholders.
-- It is currently intended that a portion of the New Equity
will be offered to existing Interserve shareholders and new
investors through a public offering of the New Equity (the "Public
Offering"), although the implementation of the Deleveraging Plan is
not conditional upon a successful Public Offering.
-- The final form Deleveraging Plan, which will be subject to
Interserve shareholder and lender approvals, will be announced in
early 2019. Agreement from bonding providers and the Pension
Trustee will also be required and constructive discussions with
them are continuing.
Consideration is also being given to whether it would be in
stakeholders' interests for the board to agree to lender requests
for RMDK to be placed in a separate holding company owned by the
lenders. In addition, Interserve has reached agreement with its
lenders to defer a payment due under its principal debt facilities
on 1 February 2019 to 30 April 2019.
Debbie White, CEO of Interserve, said:
"This progress on the Deleveraging Plan is excellent news for
all our employees, customers and suppliers. It will provide us with
a strong balance sheet and enable us to move forward with
confidence and the ability to improve our business and deliver our
long term strategy."
This announcement contains forward-looking statements in respect
of the Group and its Deleveraging Plan. By their nature, these
statements involve uncertainty, known and unknown risks and other
factors and therefore assurance cannot be given that any particular
expectation will be met. In particular, while Interserve continues
to work towards the implementation of the Deleveraging Plan in the
first quarter of 2019, there can be no assurance that the
Deleveraging Plan will be implemented unless and until agreements
have been reached with several parties and until all conditions are
satisfied.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION RELATING TO
INTERSERVE PLC.
LEI: 549300MVYY4EZCRFHZ09
- Ends -
For further information please contact:
Martin Robinson +44 (0) 207 3534200
Tulchan Communications
About Interserve
Interserve is one of the world's foremost support services and
construction companies. Everything we do is shaped by our core
values. We are a leader in innovative and sustainable outcomes for
our clients and a great place to work for our people. We offer
advice, design, construction, equipment, facilities management and
frontline public services. We are headquartered in the UK and
FTSE-listed. We have gross revenues of GBP3.7 billion and a
workforce of circa 74,000 people worldwide.
www.interserve.com
For news follow @interservenews
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END
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