Invensys to Reveal Comprehensive Refinancing Package, Seeking to Address Debt Concerns

Invensys, a distressed engineering group, is poised to unveil a major refinancing package, aimed at addressing its debt obligations and stabilizing its financial position. The three-part package, which involves a share placing, a high-yield bond issue, and bank debt restructuring, is expected to total £2.5 billion. The equity component of the package is estimated to be around £430 million, indicating that the company is seeking to address a significant debt hole in its 2005 financing bucket. Invensys has also been under scrutiny for its disposal programme, which has been put on hold, and its use of proceeds from the sale of its metering arm.

Key Takeaways:

• The refinancing package is expected to total £2.5 billion, with the equity component accounting for £430 million.
• The package includes a share placing, a high-yield bond issue, and bank debt restructuring.
• Invensys has been using proceeds from the sale of its metering arm to pay down liabilities, but the exact amount and destination of these funds are unclear.
• The company has a significant debt obligation to address in 2005, with an estimated funding requirement of £1.05 billion.
• Invensys has a Euros 500m bond maturing in April 2005 and has drawn £778m on its August 2005 debt facility.

Statistics:

• The expected total refinancing package is £2.5 billion.
• The equity component of the package is estimated to be £430 million.
• Invensys has a debt facility of £778 million, drawn on its August 2005 debt facility.
• The company has a funding requirement of £1.05 billion in 2005.
• Invensys has a Euros 500m bond maturing in April 2005.