ALS Limited Clutches USD 300 Million New Debt Facilities

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Testing service provider ALS Limited (ASX: ALQ) has successfully secured US$300 million credit facility for the tenor of 3 years.

In the announcement to Australian Securities Exchange, ALS has announced the completion of refinancing of its current bank debt facilities. It has been done through the execution of new revolving credit facilities for as much as USD 300 million.

The funding includes a series of new committed multi-currency bilateral revolving credit facilities which will replace the maturing bank facilities totalling USD 40 million, currently undrawn.   

Besides providing flexibility in operations, these new debt facilities will add the financial backbone to placement and acquisition transactions. ALS now have the sufficient liquidity required for the payment of US Private Placement notes which are due to be matured shortly.

Moreover, the list of financers includes Australia’s two big four banks Westpac Banking Corporation and Commonwealth Bank of Australia while other major banks includes Hong Kong and Shanghai Banking Corporation, Wells Fargo, and Mizuho Bank. These Banking group have provided the balanced mix of service capability and geographic reach to the ALS’s worldwide operations.

ALS CEO and Managing Director Raj Naran stated that the new long-term facilities secured by the five major banks demonstrates the ALS’s high credit worth, the consistent track record of growth, cash flow generation and the robust balance sheet of the company.

Well, in the recap of company’s recent performance, it has been observed that ALS shown 21.1% growth in its bottom line. That means company’s underlying profit for Fiscal 2018 has gone up to $142.2 million, from previous $117.4 million in FY17. As a result, ALS has delivered $0.28 underlying earnings per share, up 21.9% on $0.23 underlying EPS reported in Fiscal 2017. On the credit worthiness front, the group has achieved the leverage ratio of 1.7 times net debt over underlying EBITDA at the Fiscal year ended 31st March 2018.

At the end of refinancing process ALS can be seen well positioned for future growth underpinned by strong level of liquidity. In the past one year, ALS’s stock has surged 2.38% while it has been picking up pace since the last few months as the stock has mounted as much as 9.93% over the past three-month period.

Whereas, in today’s trading session ALS Limited has edged up by 0.733% to last trade at $8.250 on 24 October 2018. On the same date it last traded at a PE of 79.210 x with market capitalization of $4.02 billion.


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