TT Electronics improves debt terms with new bank facility

TT Electronics has replaced its bank debt with a larger revolving facility on more relaxed terms.

TT has arranged a £150m multi-currency facility over a five-year term with seven banks, with the margin on drawings reduced and more relaxed covenants including stretching permissible ratio of net debt to EBITDA from 2.75 times to 3.0 times.

"We are pleased with the strong support from our relationship banks, and by the terms that we have agreed with them," said chief financial officer Mark Hoad.

"The new facility strengthens and extends the group's financing arrangements, underpinning our ability to pursue our strategy of returning the business to sustainable profitable growth."

A trading statement from TT last week showed the producer of highly engineered electronic components had got off to a strong solid to the year, with organic revenue flat with total growth of 4% driven by progress of acquisition of Aero Stanrew, a maker of ruggedised electromagnetic components.