The company has also reached an agreement to defer the test date for compliance with our loan covenants to 31 March 2018.
The additional facilities totalling £180 million comprise a £38m committed revolving credit facility, £37m of committed ancillary facilities, committed bonding facilities of £93m plus £12m of additional funding available by agreement with the lenders. The facilities expire on 30 March 2018.
The Group said: "In order to obtain these facilities, Interserve has agreed to close out its cross-currency swaps, which hedge exchange rate exposure on existing US Private Placement loan notes. The proceeds generated by closing out the swaps of approximately £44m will be used to repay existing borrowings from current bank facilities.
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"Unwinding the accounting for the sterling value of the debt and the associated offsetting swap transactions will increase net debt by approximately £10m."
Debbie White, Interserve's Chief Executive, said securing the agreements "puts Interserve on a firmer footing".
"Whilst there is still much to do, Interserve has significant opportunities based upon a strong client base and our dedicated employees," she said.
"There is considerable potential for business improvement across the Group. These short-term committed borrowing facilities, together with the ongoing work to clearly define the strategy and commercial structure for the business going forward, will bring further stability and clarity for our clients, our people and our shareholders."
(LM/MH)
