Tool hire firm’s turnaround plans boosted by £245m refinancing deal
HSS Hire Group, which reported a pre-tax loss of more than £80m for 2017, has announced a major refinancing with £245m of debt facilities.
The company, which has the majority of its workforce based at Manchester’s Trafford Park. has agreed a new term loan facility of £220m and a revolving credit facility of £25m in order to refinance its existing corporate debt.
The new term loan facility of £220m will be provided by HPS Investment Partners with £200m maturing in June 2023, and £20m, with flexibility to be settled before maturity, in December 2020.
In connection with the facility, the company has granted HPS Investment Partners 8,510,300 warrants to subscribe for new ordinary shares in the company.
A new revolving credit facility has also been agreed with HSBC Bank and National Westminster Bank, maturing in December 2022.
Paul Quested, HSS chief financial officer, said: “We are very pleased to have successfully secured the long-term refinancing of the group.
“This now ensures that we have the appropriate facilities in place to continue delivering on our strategic priorities and the group’s full potential.”
In April, HSS reported widening losses for the year to December, but insisted its turnaround was on track.
Losses came in at £85.2m from £17.4m the year before, with the company reporting £66.6m in one-off costs linked to restructuring.
Around £40m of the costs related to the reduction of its store estate. HSS closed 55 branches to leave it with 250 sites across the UK and Ireland, while it cut almost 250 jobs.
At the time of the results being published, chief executive Steve Ashmore admitted that 2017 had been a “difficult year”.
“When I arrived in June, I instigated a thorough strategic review process, the results of which have given us clear direction and an ambition to restore the business to historic levels of performance,” he said, while adding that the company had made a strong start to its 2018 financial year.
