Interserve reveals deleveraging details

Interserve has agreed a deleveraging plan with the pension trustee as it looks to raise approximately £435.2m to cover its debts.

The outsourcing giant will offer new shares at 15.3 pence per share, after it initially struck a deal with is lenders, bonding providers and pension trustee on 6 February.

The plan comes following the company’s poor financial performance, with debts of £500m and a share price of 6 pence reported in December 2018.

Interserve CEO, Debbie White, said: “The agreement of deleveraging plan terms with our lenders, bonding providers and pension trustee represents a significant milestone for Interserve. Implementation of the deleveraging plan is in the best interest of all our stakeholders.

“The plan provides new liquidity and creates a strong balance sheet, which, alongside our Fit-for-Growth programme, will provide us with a competitive financial structure to continue to improve the business and deliver on our long-term strategy."

The plan also states that RMD Kwikform (RMDK) will remain part of Interserve and £350m of existing debt will be allocated to RMDK, “of which £169m will be cash-pay and £181m will be converted into a subordinated non-cash pay debt instrument”.

Following initial reports that the firm was struggling, The Pensions Regulator said it was working closely with both the trustee and sponsoring employers to ensure the best outcome for members.

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