23.07.2014
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DGAP-News: Firstextile AG: Secured new 100m USD syndicated loan to broaden further business development
DGAP-News: Firstextile AG / Key word(s): Miscellaneous
Firstextile AG: Secured new 100m USD syndicated loan to broaden
further business development
23.07.2014 / 10:21
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Firstextile AG: Secured new 100m USD syndicated loan to broaden further
business development
- Syndicated loan improves financing structure and secures growth
financing in a long-term
- CEO sees stepping stone for smooth implementation of the expansion
project
- Long-term advantages for business performance expected
Frankfurt am Main, 23 July 2014 - Firstextile AG (FT8) has secured a 100
million US dollar (approx. 73 million Euros) syndicated loan for its
wholly-owned subsidiary China Firstextile (Holdings) Limited. Purpose of
the loan is to fund corporate growth initiatives and associated capital
expenditures and working capital in a long term. In addition the company
improves its financing structure by refinancing more expensive domestic
short-term loans. The coordinating arranger of the loan is Nomura
International (Hong Kong) Limited.
Fred Yang, founder and CEO of Firstextile AG: "The syndicated loan marks a
stepping stone for a smooth implementation of the expansion project, which
aims to double our current production capacities. At the same time the new
loan enables us to repay the domestic 1 year loan with higher interest
rate, which will improve our financing structure and increases our planning
security over the next 3 years. But most important: This enables us to
substantially benefit from the huge opportunities of all our three business
segments in the overall very attractive Chinese domestic market."
With regards to the company's shareholders Richard Cao, CFO of Firstextile
AG, adds: "This syndicated loan is not expected to cause any dilution for
the shareholder value. On the contrary: The equity ratio of 70.5 per cent
as of 30 March 2014 and our cash position are an excellent basis for a
strong debt capability of Firstextile. As a result, we will continue to
maintain a sound balance sheet structure. Therefore we are convinced of the
long-term advantages for our business performance and this will also
benefit our shareholders."
The loan facility has a repayment schedule with a first repayment of 5 per
cent of the outstanding loan after 18 months, further repayments of 15 per
cent of the outstanding loan each every three months thereafter and a final
repayment of 20 per cent of the outstanding loan after 36 months. The loan
has an interest rate of 4.25 per cent plus 3m LIBOR.
Company profile
Firstextile is one of the leading manufacturers of high-end yarn-dyed
fabrics in the Chinese market. It also markets fabrics and shirts
specifically designed for uniforms used by Chinese government institutions
and enterprises, as well as its own branded men's wear for the Chinese
premium market segment. The company operates modern production facilities
in Jiangyin near Shanghai, China, which is one of the main centres of the
Chinese textile industry, and it focuses particularly on high
product-quality. Net proceeds from the successful completion of the IPO in
November 2012, will primarily be used to double annual production capacity
from the current 36 million metres to 72 million metres by the end of 2014.
End of Corporate News
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23.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Firstextile AG
Lyoner Str. 14
60528 Frankfurt am Main
Germany
Phone: +49 (0) 69 6655 4416
Fax: +49 (0) 69 6655 4418
E-mail: [email protected]
Internet: www.firstextile.de
ISIN: DE000A1PG8V8
WKN: A1PG8V
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Stuttgart
End of News DGAP News-Service
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278919 23.07.2014
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