Clyde secures interest rate swaps

DONCASTER-based Clyde Process Solutions, the pneumatic conveying and air filtration systems company, today revealed that it had undertaken interest rates swaps to cut costs.

The company said that new interest rate swaps had been entered into for 75 per cent of the group's outstanding loans.

This will contribute around 280,000 to an expected reduction in interest costs of 373,000 in the year to February 2011 when compared to the previous year, provided exchange rates remain constant.

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The swaps are a hedge against variable interest rate exposure on the loans that provided part of the MAC acquisition funding in 2007.

The company added: "The new interest rate swaps cover forward to the repayment dates of the loans in 2013, 2014 and 2015. The interest cost reduction from the new interest rate swaps is effective from July 2010 and has already been factored into management expectations for the current financial year."

The group will be announcing its preliminary results for the year ended February 28 2010 on Tuesday, May 25 2010.

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