Deceuninck secures refinancing deal

Richard Higgs

Published: July 24, 2012 6:00 am ET

Related to this story

Topics Construction, Pipe/Profile/Tubing

HOOGLEDE, BELGIUM (July 24, 12:15 p.m. ET) — Belgian PVC window frame maker Deceuninck NV has sealed a 140 million euro ($170 million) refinancing deal allowing the group to develop its strategy over the coming five years.

The company, based in Hooglede-Gits in Belgium, has agreed a five-year credit facility with a syndicate of five European banks despite the challenging economic environment. The funding consists of a 100 million euro multi-currency revolving credit facility and a 40 million euro three and a half year term loan.

This financing agreement replaces an earlier long term credit deal concluded in September 2009 consisting of a syndicated bank facility due to expire in September 2013 and senior secured notes maturing in September 2014.

The new deal enables Deceuninck to repay the senior secured notes in full and allows it to pay a dividend.

Banks in the new syndicate include ING, BNP Paribas Fortis, Commerzbank, Banque LB Lux and KBC.

Conditions of the latest agreement are easier than for the previous loans, reflecting Deceuninck group’s stronger position since its 2009 financial restructuring. In the first half of 2012, the group reported a 2 percent increase in annual sales amounting to 274.3 million euros against the same period in 2011.

“This agreement finally concludes one of the most challenging chapters in the 75 year history of Deceuninck,” said CEO Tom Debusschere in a statement.

“This reflects the confidence of the banks in our sound financial position and our long term competitive power. For the next five years, this new facility provides sufficient headroom and flexibility to further execute our strategy and duly respond to an uncertain economic environment,” the chief executive added.

Deceuninck has suffered from declining construction markets and soaring PVC costs in recent months although resin prices have eased towards the end of the second quarter. The group has also benefited from rising demand in the latest period in Russia, Turkey and the United States, while volumes in Germany and Belgium remained stable, it reported.

The company's Deceuninck North America LLC unit is based in Monroe, Ohio.


Comments

Deceuninck secures refinancing deal

Richard Higgs

Published: July 24, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Vi-Lux expands capacity, with room already laid out for future growth

April 15, 2014 2:00 pm ET

Vi-Lux Building Products Inc. just expanded its extrusion capacity by 15 percent — and while work crews were inside the Napanee, Ontario,...    More

Polypipe shares rise on opening day of IPO

April 15, 2014 11:06 am ET

Polypipe Group plc saw its share prices rise during its first day of public trading on the London Stock Exchange, rising from 245 pence ($4.10) to...    More

CertainTeed and Saint-Gobain go green with new North American HQ

April 14, 2014 1:24 pm ET

Renovation work is ready to begin on a LEED-certified headquarters for building materials maker Saint-Gobain and its subsidiary, CertainTeed Corp.,...    More

Chinese plastic pipe production grows 10 percent

April 14, 2014 1:21 pm ET

KUNMING, CHINA — China’s plastic pipe production grew 10 percent last year, to 12.1 million metric tons, fueled by increasing...    More

Image

BASF's new products for Chinaplas will focus on R&D for the region

April 10, 2014 3:14 pm ET

The plastics industry in China is growing at a faster rate than its gross domestic product, and BASF SE officials believe there is growing consumer de...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events