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

A third generation is adding to the growth at American Vinyl Co.

July 28, 2014 4:32 pm ET

American Vinyl Co., a compounding and extrusion company that increased its workforce 20 percent this year, is looking to double its space for storing ...    More

Image

Who are the fastest growing pipe, profile and tubing extruders?

July 28, 2014 3:09 pm ET

Question: What's the word on this week's Plastics News annual ranking of the top Pipe, Profile and Tubing extruders in North America? Answer: Up....    More

Image

Australian trade group battles non-compliant PVC pipe fittings

July 28, 2014 2:19 pm ET

An Australian plastics industry association is battling against imported, non-conforming PVC pipe fittings, but is stymied by a convoluted web of...    More

Image

ADS launches public trading on NYSE

July 25, 2014 10:41 am ET

Advanced Drainage Systems, the world's largest producer of thermoplastic corrugated pipe, made its debut on the New York Stock Exchange today with 14....    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC, a...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events