Plastic pipe supplier Wavin has reached an agreement with the coordinating banks of its lending facility (Fortis Bank Nederland, ING, Rabobank and RBS) on the outline of a comprehensive recapitalisation package.
The financing package would include an amendment and restatement of the existing debt facility and a forward start agreement of €475 million to extend the maturity of the company's debt facility to April 2013.
The company will also attempt to raise €225 million, mainly through a rights issue.
The capital raising is conditional upon support from the syndicate banks for the amendment and restatement of the existing debt facility.
The news comes after a tough trading year for the plastics giant.