New Refinancing agreed

New medium-term refinancing signed

Gelsenkirchen, 21 June 2016 – Masterflex SE signed a new syndicated loan agreement with four banks for a volume of up to € 45 million in total. The new agreement comprises four tranches and matures in June 2021. Implementation is planned for June 2016. The new agreement replaces the current syndicated loan maturing in 2018. Covenants are equity ratio, interest cover and leverage ratio similar to the current agreement.

The structure of Masterflex SE’s new syndicated loan combines all the financial liabilities under the existing syndicated loan into two new amortising loans and again includes a revolving credit line and an acquisition facility. The first amortising loan is to refinance the existing liabilities. The second amortising loan is to refinance the expansion of the Gelsenkirchen site. The third tranche is a revolving credit line and the fourth tranche, the acquisition facility, serves to fund potential acquisitions in the hose business, which is a target of Masterflex Group’s long-term growth strategy. The terms and the collateral concept for the new syndicated loan take into account the Group’s improved credit rating; therefore, the interest margin has been reduced and some of the collateral is no longer required. The refinancing is being implemented with the same group of banks used in the past.

With the new agreement, Masterflex adjusts its refinancing to reflect the continued improvement of its credit rating and extends the Group’s funding security by three years from the middle of 2018 to the middle of 2021. In addition, it has again secured funding for potential acquisitions in the hose business.