Rentokil Initial in talks to refinance debt

Alan Brown, chief executive, said rats in Libya have "thrived" after Rentokil pulled out of Tripoli, Misrata and Benghazi last year because of the civil unrest.

"I think we did a terrific job when we were there and they [the rats] were really unleashed on the population when we withdrew," he added. "It seems the authorities are keen to get us back."

Securing the Libya contract would be a welcome boost to the hygiene and rat-catching conglomerate after it warned losses at its troubled parcels division City Link widened in the first quarter of 2012.

The company wants to rework its borrowings ahead of the maturity of £125m of debt in August and September next year, and a €500m (£395m) bond in March 2014.

Rentokil is being advised by a group of six banks, including Royal Bank of Scotland and Barclays.

Alan Brown said a deal could be done within three to four months. However, he criticised credit rating agencies as “frustrating” and said the company will have to “borrow 12 months in advance and more than we need” in order to maintain Rentokil’s BBB- rating.

The refinancing plans were revealed in Rentokil’s half-year results yesterday.

The company reported a 0.6pc rise in revenues to £1.26bn in the first half of 2012, but pre-tax profits climbed 57pc to £46.6m as losses were cut at Rentokil’s troublesome parcels arm City Link, which has not made a profit since 2007.

No comments yet.

Leave a Reply