Forterra draws down its £150 million revolving credit facility

By Rebecca Melvin

New York, March 24 – Forterra plc said it has drawn down its £150 million revolving credit facility as a precautionary action in light of uncertainty stemming from the Covid-19 pandemic.

The company said in an update on Covid-19 that its current cash reserves are about £70 million and that it has access to an undrawn overdraft facility of £10 million. In addition, the group's credit agreement includes a £50 million uncommitted accordion facility on the same terms as the main facility.

“We are in regular discussion with the company's lenders, all of whom remain supportive, to understand what future funding options may be available to the company in light of recent government announcements,” according to the company’s news release.

The company said that it has suspended all business operations until further notice under new government guidance.

At the end of 2019, the company had net debt of £43.2 million, which represents a multiple of 0.6 times EBITDA on a pre-tax basis.

U.K.-based Forterra produces manufactured masonry products.

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