Begbies agrees new debt deal

INSOLVENCY specialist Begbies Traynor has secured new debt facilities of £30m.

Provided by HSBC, they will replace the groups previous facilities which also stood at £30m,  provided by three lenders including HSBC. These were due to mature between July 2017 and April 2021.

The new unsecured facilities mature in  August 2021 and comprise a £25m committed revolving credit facility and a £5m uncommitted acquisition facility, at a lower overall cost to the previous facilities.

The listed Manchester-based company, which has offices nationwide, said there will be one-off costs incurred in connection with the refinancing in the current financial year, with the full benefit of the reduced finance costs being realised in future years.

It added that it will retain considerable headroom under the new facilities, with net debt having stood at £10.4m at 30 April 2016.

Ric Traynor, executive chairman of Begbies Traynor Group, said: “We are pleased to have completed our new debt facilities with HSBC.  These will provide the headroom for the continuing development of the group, both organically and through acquisitions, whilst reducing the group’s funding costs.”