CentralNic completes on $250m refinancing

Internet marketing and online presence specialist CentralNic Group has completed on its refinancing, it announced on Monday.

The AIM-traded firm said that as part of the refinancing, it now had a new $250m senior facilities agreement.

It said the agreement consists of a $150m term loan and a $100m committed revolving credit facility, providing a “notable reduction” in borrowing costs to the group.

Funds from the term loan were used to fully repay CentralNic's €126m senior secured bonds, as well as repay drawings under its previous revolving credit facility.

CentralNic said its new revolving credit facility was available for general corporate purposes, including mergers and acquisitions.

“The new senior facilities agreement reduces CentralNic's cost of capital and further augments the company's capacity to continue to execute its roll-up strategy,” said chief financial officer Michael Riedl.

“It is a great vote of confidence by our financing partners and a testament to the resilience of our business model as well as our disciplined approach to capital allocation.

“We remain focussed on executing our strategy and welcome the new syndicate of banks to working with the group.”

At 1456 GMT, shares in CentralNic Group were up 2.71% at 130.95p.

Reporting by Josh White for Sharecast.com.