Injection moulder IPL Plastics plc, continuing to pave the way to an initial public offering, plans to create a new Canadian company and refinance its debt.
The company, originally based in Dublin, said in a 17 April news release that it plans to create a new holding company called IPL Plastics Inc. The moulder is considering listing the new company on the Toronto Stock Exchange where it will have a wide investor audience and "a sound platform for access to capital."
IPL Plastics plc on April 17 agreed to a€400m refinancing of existing debt with a syndicate of banks. The new, five-year, multi-currency debt would comprise a term loan of €110m and a revolving credit facility of €290m. The refinancing replaces two main loans by separate Irish and Canadian banking syndicates. The agreement allows IPL to seek increases of its revolving credit to a maximum of €100m.
IPL said setting up a Canadian holding company should minimise risks associated with an IPO. As well, a Toronto listing should provide the firm with better marketability of its shares in a wider pool of institutional and other investors in North America.
IPL plans to seek shareholder approval of its plans in special meetings following its annual general meeting on 17 May.