Synthomer PLC — Capital/Financing Update 2022

Oct 20, 2022

National Storage Mechanism | Additional information

RNS Number : 4772D

Synthomer PLC

20 October 2022

20 October 2022

Synthomer Plc

Covenant relaxation to the end of 2023 agreed

Synthomer Plc ('Synthomer' or 'the Company') today announces that it has agreed with its banking syndicate a covenant relaxation that provides the Company with increased headroom through to the end of 2023.

Bank debt covenants have been increased to 4x in December 2022, increasing to 4.75x in June 2023 and reverting to 4x in December 2023. Synthomer's priority is to return leverage to within its target range of 1 - 2x. As part of the covenant relaxation process, Synthomer announced last week that it would suspend all dividend payments until the end of 2023.

The covenant relaxation process was ongoing at the time of Synthomer's recent investor event on 12th October 2022, where management also set out plans to generate cash savings of between £150m and £200m in 2023, excluding divestments. This will be achieved from reductions to working capital, capex, operating costs and from the suspension of dividend payments.  

Synthomer also confirmed that it has significantly improved its financing structure having signed a five year, £450m facility with UK Export Finance on terms that are similar to the Company's existing RCF.

-ENDS-

For enquiries contact:

Investors: Tim Hughes, Synthomer	+ 44 7764 859147
Press: Charlie Armitstead, Teneo	+44 7703 330269

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