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Interserve signs refinancing deal with its lenders, bond providers, and pension scheme trustees

Interserve, which warned in October that it may breach covenants, said the new lending will provide cash facilities of £196mln and bonding facilities of up to £94.5mln

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Interserve said it will issue warrants to the providers of the cash and bonding facilities with the right to subscribe for new shares at 10p each

Interserve PLC (LON:IRV) has signed a refinancing deal with its lenders, bond providers, and its pension scheme trustees, in a move to strengthen the construction services company’s cash balance.

Interserve, which warned in October that it may breach covenants, said the new lending will provide cash facilities of £196mln and bonding facilities of up to £94.5mln maturing in September 2021.

READ: Interserve shares slide as it seeks increased borrowing limit

The small cap outsourcing group said it will issue warrants to the providers of the cash and bonding facilities with the right to subscribe for new shares at 10p each.

If exercised that would provide the warrant holders with an interest of up to 20% in Interserve’s post-issue share capital.

In late afternoon trading, reflecting this potential dilution, Interserve shares were 5% lower at 105.7p/.

Outsourcing firms such as Interserve have been in focus since rival Carillion (LON:CLLN) entered collapsed in January under the weight of its debts after a series of profit warnings.

Quick facts: Interserve

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LSE:IRV
Market: LSE
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