News

January 28, 2009

Plexus Holdings Bags Another Shell Contract And Secures Increased Banking Facility

As the global credit crunch continues to bite, it is something of an achievement when a company not only renews but also increases its lending facilities. It was, therefore, a good start to the year for investors in Plexus Holdings when the specialist wellhead system supplier announced a 25 per cent increase in banking facilities following annual renewal negotiations with Bank of Scotland. The AIM-quoted oil services group can now look to a £4 million credit facility on a three-year revolving basis with an additional £1 million overdraft facility to help deliver on its short to medium term plans.

CEO Ben van Bilderbeek welcomed the increase and the “excellent terms” on which the lending was secured: a two per cent over LIBOR for the three-year revolving credit facility and three per cent over the Bank of Scotland Corporate base rate for the overdraft. The company said it was “comfortably” operating within the levels prescribed in the banking covenants, adding that the company’s interims, due in March, would be in line with market expectations.

Despite the current...