Micro Focus secures new debt facility
Micro Focus International, the acquisitive legacy software firm, has agreed a new three-year banking facility with an enlarged group of banks for $275m.
Micro Focus International, the acquisitive legacy software firm, has agreed a new three-year banking facility with an enlarged group of banks for $275m.
The new facility, which will replace the existing $215m revolving credit facility, has been agreed with Barclays Corporate, Clydesdale Bank, HSBC, Lloyds TSB, and the Royal Bank of Scotland.
The margin on the new facility will be at the London Interbank Offered Rate (LIBOR) in addition to between 1.75% and 2.35%. This compares favourably to LIBOR plus 2.25% - 2.75% in the existing facility.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The financial covenants are earnings before interest and tax-to-interest cover ratio of a minimum of 4 to 1 and net debt to earnings before interest, taxes, depreciation, and amortization limits of 2 times until 30 April 2013 and 1.5 times thereafter.
The new facility will be initially utilised to repay the outstanding gross debt under the existing facility which today stands at $70m, after which it may be used for acquisitions, dividends and/or share buy-backs and general corporate purposes.
Chief financial officer Mike Phillips of Micro Focus said: "This new banking facility, with an additional bank and on better terms than our existing facility, underlines the financial strength of Micro Focus and provides us with significant flexibility for the foreseeable future."
The share price rose 2.95% to 377p by 11:57.
NR
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Will “Liberation Day” strike again?
Donald Trump’s 90-day tariff pause comes to an end on 9 July. Can we expect further market turmoil?
-
Israel claims victory in the '12-day war' with Iran
Donald Trump may have announced a ceasefire in the 12-day war between Israel and Iran, but what comes next depends on what happens internally in Iran