City briefs: new banking agreements for Melrose; board changes at Portmeirion

Melrose Industries has agreed fresh banking arrangements with its banking syndicates.

The firm has signed the deals with its banking syndicate including improved financial covenants to 31 December 2022. Beyond that date Melrose reverts to the original covenants for the balance of the facilities’ term. These amendments cover all the Group’s primary borrowing arrangements that contain financial covenants.

Melrose’s £3.2bn revolving credit facility is repayable in January 2023 and the Group’s committed term loan £900m can be extended to April 2024 at Melrose’s option. In addition to these committed banking lines the Group has two bonds: a £450m bond maturing in September 2022 and a £300m bond maturing in May 2032, neither of which contain financial covenants.

A statement from the company said: “Melrose is grateful for the continued support of its lending banks which means that it has the flexibility it needs to continue to focus on cash generation and adapting the Group to current market conditions. The new financial covenants have been designed to give Melrose considerable headroom and flexibility.”

Portmeirion, the designer, manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and Nambé brands, has made changes to its board.

Having served the Group for over 20 years, Lawrence Bryan, currently non-executive director and previously chief executive officer until September 2019, will retire from the board with immediate effect. Phil Atherton, group sales and marketing director, is set to leave the business and steps down from the board with immediate effect.

Portmeirion has announced has also revealed that Jacqui Gale and Bill Robedee will join the board. Gale will join with immediate effect whilst Robedee’s appointment remains subject to customary Nomad checks. Both are currently key members of the Group’s senior commercial leadership team. Gale, currently managing director of Wax Lyrical, the Group’s home fragrance division, is appointed chief commercial officer. Robedee joins the board as president of North America.

At the same time Clare Askem has been appointed as a non-executive director with immediate effect.

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