Wavin recapitalises

Published:  19 June, 2009

ZWOLLE: Wavin has announced that it will seek shareholder approval on Friday 3 July 2009 for a comprehensive recapitalisation package to strengthen its capital structure.

The package includes:


  • Fully underwritten EUR 225 million rights issue of ordinary shares
  • Agreement on EUR 500 million amended and restated credit facility and EUR 475 million forward start facility.
  • Extension of maturity until April 2013

A number of the largest shareholders have committed to participate in the rights issue.

Philip Houben, Wavin chief executive officer commented: “The recapitalisation package we present today will considerably reduce our leverage and provide substantial financial headroom to sail the company through the current storm.

"Since the second half of last year Wavin has been faced with a very adverse market environment due to the credit crisis. We have immediately taken severe cost reduction measures and prioritised cash generation, but this could only partially offset the effect of the unprecedented market decline.

"This recapitalisation package is an important step for the company and all its stakeholders, and will ensure that Wavin, as Europe’s leading supplier of plastic pipe systems, is well positioned to capitalise on the favourable long term business drivers.”

According to the company, the measures announced today will significantly strengthen the company’s balance sheet. The net proceeds of the rights issue will be used for debt reduction. The amended and restated credit facility will create substantial headroom for the business in these challenging times. The forward start facility, to extend the maturity of the financing, will provide the company with adequate financing until April 2013.

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