Speedy agrees £220m loan
TOOLS and equipment firm Speedy Hire has agreed a new £220m funding package with a syndicate of six banks.
The asset-based revolving credit facility will replace its existing £210m cashflow loan which was due to mature in June 2012.
Speedy said it will use the finance for “general corporate purposes”.
The business has stayed with its existing lenders – The Royal Bank of Scotland, Barclays, Burdale Financial and Lloyds – and added Bank of America and GE Capital to the syndicate.
The group expects to record an exceptional financing cost of approximately £2.2m in the first half of the year for the non-cash write-off of the remaining costs associated with the previous loan. The new facility, which matures in January 2015 with no prior scheduled repayment requirements, carries pricing of LIBOR plus 2.25-4%.
Chief executive Steve Corcoran said: “The support of our banks in providing a facility which gives additional headroom and is more flexible is a great vote of confidence and illustrates both the strength of our balance sheet and the quality of our asset base.
“We now have certainty with regard to our medium term funding; this is another key step in our recovery and will underpin our strategy to grow the business in the years ahead.”
Michael Hartig, head of Barclays Corporate in Manchester, said: “Speedy is a key relationship for Barclays Corporate and one which actually dates back to 1946. We are delighted to have been associated with such a success story over the intervening period and our participation in this deal confirms our position as a one of the leading financiers to the company.”
Speedy was advised on the refinancing by Matthew Morgan and Debra Cooper at law firm Pinsent Masons.
Meanwhile, Speedy has announced the appointment of Dr Chris Masters to the board. Masters has 20 years’ experience as an executive board member of listed companies.
He was Chairman of Aggreko from 1997 to 2002 and prior to this, he held a number of senior roles at Christian Salvesen, including managing director of the Industrial Services Division and chief executive. He will replace Peter Atkinson who will retire on July 13.
