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

Image

Bigger doors, windows gain appeal

March 5, 2015 11:43 am ET

Door and window manufacturers are continuing to super-size product lines to make a grander first impression at main entrances and to expand vista...    More

Image

Winter blasts ADS sales forecast

March 4, 2015 3:40 pm ET

Net sales forecasted for Advanced Drainage Systems are likely to slip as bad weather grips much of the United States into early March, delaying...    More

Image

Snow blamed for roof collapse at Pennsylvania pipe maker

March 3, 2015 4:51 pm ET

Heavy snow is likely to blame for bringing down part of the roof of a Charter Plastics Inc. facility in Titusville, Pa., about 3 p.m. March 3.    More

Image

Ukrainian crises eats into plans for building materials firm Masterplast

March 2, 2015 10:03 am ET

Hungarian building materials manufacturer Masterplast Nyrt. saw its earnings fall in 2014 after the worsening Ukraine crisis forced it to write off...    More

Image

German molder picks North Carolina for US manufacturing plant

February 26, 2015 4:21 pm ET

UPDATED — German medical goods company Raumedic AG has chosen Mills River, N.C., for its first U.S. manufacturing site and U.S. headquarters.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events