Alumasc renews £20m borrowing facilities
MIDLAND-based building group Alumasc, which has large operations in Shropshire and Staffordshire, has agreed renewed borrowing facilities of £20m for a further five years. The existing facilities were due to expire in May 2012.
The new £20m facility will be provided by Barclays and HSBC in equal participation. In addition, the banks will provide overdraft facilities of £6m.
Despite higher lending margins across the banking market compared to four years ago when the previous facility was negotiated, Alumasc said it expected the new financing arrangements, when combined with interest rate hedging, would result in a modest reduction in the group’s overall effective interest rate at the current level of LIBOR. The other principal terms of the new financing facilities are largely unchanged.
Andrew Magson, group finance director, said: “We are pleased to be working with Barclays and HSBC and to have completed the routine refinancing of the group ahead of our forthcoming year end.
“The five year committed borrowing facilities we have secured are intended to provide sufficient headroom to support the anticipated growth in Alumasc’s business over that period, including the continued resurgence of Alumasc Precision, the recovery of our building products businesses from recession and increased export sales.”
Maurice Heath, HSBC’s head of Corporate Banking for Midlands, said: “We are thrilled to be supporting one of the largest and most interesting building and engineering companies in the region. Alumasc is a prime example of the type of innovative, ambitious business that HSBC is committed to working with in the Midlands.
“This new banking relationship will see us work closely with Alumasc’s dynamic management team to help the business implement its exciting plans for both domestic and international growth.”
