16.01.2010

Manitowoc to refinance $400 million

Manitowoc is planning to refinance a portion of its senior secured debt by issuing around $400 million of senior unsecured notes in order to de-lever its balance sheet and increase financial flexibility.

The company is also seeking amendments to the financial covenants on its senior credit agreement in order to eliminate any covenant related concerns. The changes have been made possible by fact that it has paid down its long term debt faster than expected due to strong cash flows.

Manitowoc says that it paid down around $470 million of long term debt in 2009 $20 million more than it had forecast. This brings the total debt reduction since the $2.7 billion acquisition of Enodis in 2008 to over $750 million.

The refinancing exercise will also extend the maturities on a portion of the company's overall long term debt. Manitowoc’s share price leapt on the release of the story to a 52 week and on closed yesterday almost five percent up on the day.