Carillion to prepay £140 million credit facilities via sale proceeds

By Sarah Lizee

Olympia, Wash., Dec. 13 – Carillion plc plans to prepay and cancel its £140 million of credit facilities using proceeds from the sale of its U.K. health care facilities management business, according to a company announcement.

The company entered into a definitive business purchase agreement with Serco Group plc for an agreed price of about £47.7 million, subject to a limited working capital adjustment.

After taking account of fees, costs and taxes, the net proceeds are expected to be £41.4 million and, when received, will be applied to the prepayment and cancellation of the facilities.

Carillion said the sale forms part of the group's £300 million non-core disposals target announced as part of its strategic review in order to reduce net debt and refocus the group on its core strengths and markets.

Wolverhampton, England-based Carillion is a facilities management and construction services company.

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