Slaughter and May advised McBride plc on the reset of financing arrangements and new agreements with pension scheme trustee
Slaughter and May advised McBride plc (McBride) on the reset of its financing arrangements and new agreements with its pension scheme trustee.
McBride has entered into an agreement with the lenders under its €175m sustainability-linked revolving credit facility to, among other things, suspend covenant testing until September 2024, other than a liquidity test which has been set at a reduced level from the level originally set in December 2021. As part of the arrangement, the lenders have been granted a security package and a progressive step down in the RCF commitment from September 2024 has been agreed. Additionally, the Group’s invoice discounting lines have been extended and committed to September 2024. The revised arrangements provide a firm funding platform for McBride to progress its ambitions.
The agreement was developed in consultation with McBride’s pension scheme trustee. In order to preserve and support the position of its pension scheme, McBride has agreed to provide additional credit support in the UK in favour of its pension scheme and has agreed a new schedule of annual contributions and information sharing protocol with the pension scheme trustee.
McBride is the leading European manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets. The agreements achieved provide the business with funding certainty as its trading prospects recover and enables McBride to refocus its teams on the improvements anticipated through its cost reduction (Compass) strategies.
Slaughter and May supported McBride’s finance and in-house legal teams, and worked as part of an integrated team alongside Teneo and DLA Piper.