Credit rejig bonus for Cookson Group

SANTA came early this year for Cookson Group, bringing the troubled materials technology specialist a £450m credit facility to give it some chance of trading its way out of an £800m debt hole it dug itself into along the acquisitions trail.

All the banks Cookson does business with are in on the syndicated, multi-currency revolving credit facility, which is part-secured on assets of some group subsidiaries.

The final maturity date is September 2004, and replaces the existing £500m facility, of which £240m was due for payment next year. This could have sunk Cookson, which is not paying a final dividend this year.

Dennis Millard, Cookson's finance director, said the new facility did not mean a return to dividend in 2002 or until internal financial targets are met. He promised a trading update on 15 January and said that results for 2001 are expected to be in line with market estimates of between nil and £10m pre-tax profit, compared with last year's £197m.

Cookson shares lost 1p to 87 1/2p.