FILTRONIC has capitalised on the weak US dollar to refinance its debt, saving the company at least £1.6m a year.
The group took advantage of the relative strength of the pound to clear its $74m outstanding ten per cent senior notes. A secondary £10m short-term bank loan has also been repaid.
Both loans were replaced by a £50m loan facility, financed by HSBC and Barclays Bank at a more competitive interest rate.
Analysts last night suggested that the banks' willingness to restructure the loan was a sign of a renewed confidence in the telecoms equipment sector.
A bullish trading statement by Nokia has suggested better days are on the horizon for the sector.
Wireless telecoms specialist Filtronic, which employs about 250 people at the former Fujitsu plant in Newton Aycliffe, County Durham, said at its annual meeting in September that there were indications of an "improving trading climate".
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