Blue Star plans to announce refinancing package soon

Wednesday 2nd March 2011

Printing company Blue Star Group is intending to announce a refinancing package soon, including proposed terms for the refinancing of its capital bonds.

The company suspended cash payment of interest on the $105 million of bonds from September 2009 until its parent was in compliance with banking covenants.

Blue Star said the refinancing package included a further cash commitment from its shareholders. It depended on a number of requirements and once those were satisfied the current senior facilities would be extended from 2012 to 2015.

The company also announced a 3.3% lift in normalised earnings before interest, tax, depreciation and amortisation for the six months to the end of December, while revenue slipped 0.8% to $293.3 million.

Group managing director Chris Mitchell said there were signs of positive momentum and clear opportunities for Blue Star to improve, notably from winning an ACP Media New Zealand printing contract earlier this year.

NZPA

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