The Pact Group Holdings Ltd (ASX: PGH) share price is flat today after the packaging giant told investors it has negotiated an extension to the maturity date of $380 million worth of debt from July 2020 to January 2022 at "competitive terms".
Pact also revealed that it has secured a $50 million 6-year to maturity loan in order to pay down exisiting senior debt at a rate that does not materially change the group's funding costs.
Pact's packaging business means it has relatively reliable revenue and profit streams as it makes products in the fast moving consumer goods space, among others.
For example you will commonly see its plastic packaging products everywhere on the supermarket shelves of Coles Group Ltd (ASX: COL) or Woolworths Group (ASX: WOW). The defensive revenue streams means it can seek out debt to manage cash flows or complete acquisitions for example.
In other news it also warned that partly due to the softer-than-expected Australian economy it thinks FY 2019 EBITDA will come in at the "low end" of prior guidance between $230 million to $245 million, with an expected statutory loss of $370 million based on asset write downs.
