Stobart switches banks for £50m facility

STOBART Group, the Cumbria-based energy to aviation and infrastructure group, has agreed a £50m refinancing deal.

It has completed a £50m four-year revolving credit facility with Lloyds Bank, giving it greater funding flexibility.

Carlisle-headquartered Stobart will use the facility for working capital and to develop new projects in its biomass and aviation divisions, both of which have been earmarked as key growth areas.

The new facility replaces Stobart’s existing arrangement as well as the overdrafts with its current banking providers.  All asset finance on vehicles and equipment will remain in place.

Ben Whawell, chief financial officer, said:  “This new banking facility strengthens our financial position and provides us with a medium-term, flexible capital structure.  The financing will enable us to continue investing in our key growth areas of aviation and energy. We are pleased to have completed this new facility with Lloyds and look forward to working with Lloyds as a new banking relationship over this important phase for Stobart.”

Stobart operates across a number of different sectors including aviation, biomass energy, railway maintenance, infrastructure services and property.  The Group demerged its famous Eddie Stobart trucking division last year but retains a minority stake (49%) in the business.  
 
Andrew Hopper from Lloyds Bank’s mid markets team and Martin Beckett from the bank’s strategic finance division advised on the new facility.  
 
Martin Beckett said: “Stobart’s management team has made good progress since last year’s restructure. They have identified energy and aviation as sectors with potential to deliver significant value to the business and have put together a robust business plan to drive growth in both areas.      
 
“The enlarged facility supports the group’s operational requirements and provides financial headroom to pursue growth opportunities.”
 
Law firm Pinsent Masons acted for Lloyds Bank Commercial Banking.