Begbies Traynor increases funding line by £10m

BUSINESS recovery specialist Begbies Traynor has signed new revolving credit facility worth £30m and a new £5m overdraft facility as it looks for acquisitions. 

The new facilities, which are unsecured, have been provided by HSBC and Yorkshire Bank and replace its previous £20m facility plus a £5m overdraft.

At the end of last October, Begbies Traynor had utilised £16m of its existing banking facilities.

Interest on the new credit facilities will be charged at 2% over LIBOR and on the overdraft at 1.95% over bank base rate.

Arrangement costs linked to this refinancing, including legal fees, amount to £400,000.

Ric Traynor, executive chairman of Begbies Traynor, said: “The new facilities provide the group with a more flexible and longer term financing structure, reflecting the increasing scale and sophistication of our business.

“The additional funds will enable us to consider both organic investment and acquisition opportunities, principally in the insolvency and restructuring sector.”

The group will issue a trading update for the year ended April 30 in early June.