Synthomer U-turns on refinancing due to 'unfavourable' market terms and conditions

FTSE 250 polymer supplier Synthomer has decided not to go ahead with its proposed €300m unsecured senior notes offer due to "unfavourable" market terms and conditions.

Just three days after announcing the planned refinancing of its bank facilities, Synthomer said it will continue to evaluate a number of alternative refinancing options ahead of its current facilities maturing in 2019 to ensure that it is well positioned to deliver on its strategy of building sustainable growth.

It had said on Tuesday that proceeds from the sale of the notes would be used, along with cash on hand and borrowings under the new revolving credit facility, to repay all amounts outstanding under its existing revolving credit facility, to repay amounts outstanding under its existing term loan and to pay certain costs, expenses and fees related to the refinancing.

Synthomer also said that the refinancing would strengthen the group's financial position through increased financial flexibility, providing an appropriate capital structure and allowing it to secure, in relation to the notes, an "attractive" fixed interest rate for the next seven years.

At 1525 BST, the shares were down 1.1% to 523.50p.