James Cropper (AIM:CRPR), the AIM-listed advanced materials and paper and packaging group, has completed a refinancing of its debt facilities.
The centrepiece is a new invoice discounting facility of up to £15 million, committed for at least three years, providing flexible working capital funding to replace more rigid arrangements.
As part of the deal, the group will make a partial repayment of £7.1 million on its existing UK bank loan, funded from cash and the new facility, with the remaining balance repayable in reduced quarterly instalments through to March 2030.
The maturity of the group's US bank loan has also been extended by 12 months, deferring a final repayment of $3.2 million to December 2027.
Alongside the refinancing, James Cropper agreed a one-off pension contribution of £0.6 million into its defined benefit schemes, with previously scheduled contributions reduced by £0.35 million in aggregate through to September 2027.
The group reported net debt below one times adjusted EBITDA as of 28 March.
"The refinancing materially improves our liquidity and financial flexibility," said Chief Financial Officer Andrew Goody, adding that the new arrangements are expected to reduce cash financing costs by enabling more efficient capital deployment.
