FirstGroup agrees new $1,400m banking facilities

Bus and train operator FirstGroup has agreed $1,400m of five-year committed bank facilities to refinance $1,500m and £505m of existing revolving bank facilities that were due to mature in February 2012.

FirstGroup said: "This exercise supports the maturity of the group's debt portfolio, prudent levels of liquidity over the medium term, and reflects the group's ongoing proactive management of its debt arrangements.

The new five-year facilities have been signed with the group's relationship banks and comprise a $1,250m self-arranged 'club' revolving credit facility and a $150m bilateral term loan.

The reduction in the amount of bank facilities, enabled mainly from headroom created by the two sterling bond transactions in 2009, and the competitive pricing on the new facilities will support efficient management of interest costs over the medium term.

The covenants, terms and conditions are the same as, and in some instances more flexible than, those of the facilities that are being replaced.

Group FD Jeff Carr said: "We are delighted by the continuing strong level of support from our relationship banks, recommitting for another five years, after a competitive process.

"We timed this exercise to take advantage of the recent improvement in the banking market, and are pleased to have achieved attractive pricing, terms and conditions."

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