Electra cancels large credit facility

Electra Private Equity announced the cancellation of a large credit facility on Tuesday.

The FTSE 250 firm said that, having carefully reviewed its cash position, it has decided to cancel its existing £275m multi-currency revolving credit facility.

Its board confirmed that the facility is currently undrawn, and therefore no repayment is required as a result of the cancellation.

“As at 31 March 2016 the company had gross cash balances of £321m and net cash was approximately £185m after giving effect to pending investing activities, the interim dividend, and the redemption of the zero dividend preference shares that mature in August 2016,” the board said in a statement.

“Against this cash position, the board believes that the revolving credit facility is now surplus to the company's requirements.”

Electra said cancellation of the facility is expected to result in annual savings of £3.3m in commitment and amortised arrangement fees.