Synthomer PLC Covenant relaxation to the end of 2023 agreed

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Synthomer Plc	LSE:SYNT	London	Ordinary Share	GB0009887422	ORD 10P

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	2.70	1.77%	155.00	153.90	154.20	155.30	151.50	155.30	799,567	16:35:28

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
Chemicals	2,329.5	283.9	48.3	3.2	724

Synthomer (LSE:SYNT)
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RNS Number : 4772D

Synthomer PLC

20 October 2022

Synthomer Plc

Covenant relaxation to the end of 2023 agreed

Synthomer Plc ('Synthomer' or 'the Company') today announces that it has agreed with its banking syndicate a covenant relaxation that provides the Company with increased headroom through to the end of 2023.

Bank debt covenants have been increased to 4x in December 2022, increasing to 4.75x in June 2023 and reverting to 4x in December 2023. Synthomer's priority is to return leverage to within its target range of 1 - 2x. As part of the covenant relaxation process, Synthomer announced last week that it would suspend all dividend payments until the end of 2023.

The covenant relaxation process was ongoing at the time of Synthomer's recent investor event on 12th October 2022, where management also set out plans to generate cash savings of between GBP150m and GBP200m in 2023, excluding divestments. This will be achieved from reductions to working capital, capex, operating costs and from the suspension of dividend payments.

Synthomer also confirmed that it has significantly improved its financing structure having signed a five year, GBP450m facility with UK Export Finance on terms that are similar to the Company's existing RCF.

-ENDS-

For enquiries contact:

 
 Investors: Tim Hughes, Synthomer    + 44 7764 859147 
 Press: Charlie Armitstead, Teneo    +44 7703 330269

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October 20, 2022 02:00 ET (06:00 GMT)

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