Defence contractor Chemring (CHG) has got shot of its cash-hungry munitions business for up to €168m (£138m), killing any speculation about an emergency rights issue and focusing the remaining business on higher margin work.
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It will use £32m to pay down bank debt and offer £99m to loan note holders, which, after costs, will almost halve pro-forma net debt to £128m and slash interest charges. "This draws a line under non-core disposals," Mr Papworth tells us, but he admits the munitions sale is "not a silver bullet for the business".
