Volex refinances $30m revolving credit facility

Volex has refinanced its $30m (£23.99m) revolving credit facility, it announced on Wednesday, which was due to expire in July.

The AIM-traded firm said the facility, provided by Lloyds Bank and HSBC UK Bank, was extended on improved terms for a three-year period, with a maturity date of July 2022.

It said changes to the terms of the revolving credit facility included a 40 basis point reduction in the non-utilisation fee, and a 70 basis point reduction in its interest-rate margin.

The refinanced facility also had fewer restrictions in key operational covenants, and a $10m uncommitted "accordion" feature to provide further capacity, up to a total facility limit of $40m, for potential future acquisitions to support the group's strategy.

Volex currently had a net cash balance of $16.4m, the board reported.

“We are pleased to have finalised this facility, on significantly improved terms, which reflects the ongoing strength of our business,” said Volex’s chief financial officer Daren Morris.

“This facility gives us both the flexibility and headroom to act on our investment decisions.”