Amec Foster Wheeler completes debt refinancing

Amec Foster Wheeler has completed a £1.7bn refinancing of its main debt facilities.

The engineering services company said the new facility with a syndicate of 20 banks includes a three year £650m term loan, a five-year £650m term loan and a five-year £400m revolving credit facility.

This replaces Amec’s existing revolving credit facility and the Foster Wheeler acquisition facility.

The interest cover covenant of more than 3x remains the same, while the net debt to EBITDA covenant rises to less than 3.75x for the first two years, then down to 3.5x thereafter.

Chief financial officer and interim chief executive Ian McHoul said: “"I am pleased that we have completed this refinancing in line with the schedule we set in November last year.

“This gives us substantial headroom and marks another important step towards further strengthening our balance sheet."

At 0920 GMT, Amec shares were up 11% to 432.20p.