Debt refinancing deal completed at engineering group
Specialist engineering group, Pressure Technologies, has confirmed completion of its debt refinancing and grant of warrants announced on 24 October 2023.
It has formally executed legal documentation with lenders Rockwood Strategic and Peter Gyllenhammar AB, both major shareholders in the company, in relation to a new Term Loan Facility of £1.5m.
The facility has been subject to full drawdown and has been used to repay an outstanding bank loan of about £0.9m to Lloyds Banking Group, to settle transaction costs and to provide additional working capital headroom.
In conjunction with the provision of the facility, the lenders have been issued with 1,933,358 warrants in aggregate (representing 5% of the issued share capital) to subscribe for ordinary shares in the company at a price of 32 pence per share.
Sheffield-headquartered Pressure Technologies currently operates across two divisions – Chesterfield Special Cylinders (CSC) and Precision Machined Components.
Chris Walters, chief executive of Pressure Technologies, said: “We are delighted to have completed the refinancing with the support of two of our major shareholders.
“Our new facility will enable us to further develop the business whilst we realise value from the sale of the Precision Machined Components division.”
Richard Staveley, non-executive director of Pressure Technologies plc and fund manager of Rockwood Strategic plc, added: “Constructively engaging with Pressure Technologies has led to us providing this loan, alongside Peter Gyllenhammar AB, another major shareholder, to support the company through to the planned divestment of the Precision Machined Components division, which we believe will unlock shareholder value.
“Chesterfield Special Cylinders is a world-class manufacturing business serving a multitude of allied navies, air forces and leading industrial businesses.
“Exposed to the emerging hydrogen economy, it is also a trusted provider of integrity management services to mission-critical defence platforms.
“The company has material asset backing and we are proud to provide finance to such an important business within the UK’s manufacturing base.”
