Energy consultant announces refinancing deal on existing borrowings
Preston-based energy procurement firm Inspired Energy has entered into a new £60m facility agreement with Santander and The Governor and Company of the Bank of Ireland.
The deal involves an accordion facility, which allows a borrower to expand the maximum allowed on a credit line or add a term loan to a credit agreement, which could take the overall commitment up to £85m.
The AIM-listed group said this will refinance its existing borrowings and provide further headroom to support the continued acceleration of the its growth and acquisition strategy.
Santander is the group’s incumbed debt provider, while the Bank of Ireland is a new lender to the business, an energy consultant to UK and Irish corporates.
The facility will be used to refinance the existing indebtedness of the group and provide additional headroom to support the continued delivery of its growth ambitions.
It runs to October 2023 and Inspired has an option to extend the term for a further year to October 2024.
Inspired chief executive, Paul Connor, said: “The board is delighted to partner with Santander and Bank of Ireland on this new £60m revolving credit facility, which provides Inspired with the capital base to deliver on our stated growth strategy.
“The relationship with Santander has been instrumental in the growth of Inspired since 2013, and the board sincerely appreciates the continued support to the group by Santander as we enter the next phase of growth.”
He added: “The board welcomes Bank of Ireland as a new partner to the group providing further validation and support to the group’s strategy as Inspired continues to grow its market leading position within the UK and Ireland energy consultancy market.”
In September Inspired said it was on track for another record year of results when it announced that half year revenues and pre-tax profits had increased.
Turnover for the six months to June 30, rose 33% from £16.24m to £21.56m, while pre-tax profits of £3.23m were a 55% improvement on last year’s £2.09m figure.