Weir Group shares were down 0.9% to 1,520p in early afternoon trading on Wednesday, after the company reported the completion of its $800 million refinancing for its main banking facility with a syndicate of 11 banks.
The company confirmed that the new $800 million Revolving Credit Facility is set to mature in April 2027, with an option to extend for up to an additional two years.
The Weir Group said that the margin on the new facility is substantially lower than the previous facility that the firm agreed to in the initial stages of the Covid-19 pandemic, and reportedly reflects the positive credit rating momentum that the company has gained over the last two years.
The firm attributed its momentum to its ability to reduce leverage and demonstrate resilience as a mining technology focused business during the volatility of the coronavirus pandemic.
The new facility was set up as a replacement for the existing $950 million Revolving Credit Facility which was scheduled to mature in June 2023.
The Weir Group noted that all key terms including covenants for the facility remained unchanged.