New fund provides £100m loan to Stobart

NORTH West transport and property group Stobart has agreed a £100m 10-year loan with M&G Investments’ new UK Companies Financing Fund.

The group said the loan – the first from the fund  – would be used to repay existing bank debt and on a range of projects across the group.

Part of it will be used to finance further development at Southend Airport, which Stobart bought in 2008, and which has been given approval to extend its runway.

Ben Whawell, chief financial officer of Stobart Group, said: “We are delighted to partner with M&G and see them as providing the core part of our term borrowing needs and as a reliable partner for the future development of the group.

“We are particularly pleased that we have access to long term debt with maturities well beyond what is usually available in the bank market.

“In addition, the facility gives us the flexibility to fulfil the strategic development of our business and assets.”

Mark Hutchinson, head of alternative credit at M&G, said: “We are pleased to be making this investment for UKCFF and working with Stobart in future.

“This fund was set up to lend long-term debt monies to UK companies and we are actively in discussion with a number of companies to make further investments.”

Panmure Gordon & Co. introduced M&G/UKCFF to Stobart and acted as financial advisor to M&G/UKCFF. BDO acted as financial advisor to Stobart.

Stobart said in a statement: “The loan will have a final maturity date of May 2020 and is structured very flexibly to permit the Group to maximise the development of its businesses and asset base, and to create additional value to shareholders, while providing UKCFF with an attractive and secure term lending opportunity.”