Major refinancing deal for £140m turnover infrastructure firm

Walsall-based infrastructure firm Barhale has secured an £11m refinance to fund its future growth plans.

The £140m turnover civil engineering specialist, which boasts a customer base including Network Rail, Anglian Water, Transport for London and Yorkshire Water, has agreed a new three-year revolving credit facility with asset-based lending specialist Independent Growth Finance (IGF).

The deal more than doubles the working capital available to Barhale from its previous lender as it moves to invest for growth and build upon its existing order book.

The contractor employs more than 700 people and has more than 40 years’ experience working in the water, transport, built environment and energy sectors, with a particular specialism in tunnelling.

Recent high-profile projects include works on the HS2 utility diversions, the Thames Tideway Tunnel and upgrades to London’s Finsbury Park tube station.

The deal was led by FRP’s debt advisory team, including partners and asset-based lending specialists Dave Edwards and Andy Dimmock.

Julian Ripley, CFO at Barhale, said: “It is hard to overstate the significance of securing this funding for our future growth potential. Alongside our direct delivery model and extensive track record delivering some of the UK’s largest civil projects, we now have a solid platform and additional capacity to fuel sustainable growth.

“There is more than £650bn of private and public infrastructure investment planned in the UK over the next decade, which presents a huge opportunity for Barhale.”

Dave Edwards, debt advisory partner at FRP, added: “Barhale is a well-established force in the sector with the scale and expertise to deliver the kind of large civil projects that will help serve communities across the country. This transaction proves the growing appetite for innovative and alternative lending models like ABL in sectors such as construction, where they have not traditionally played but are now offering significant value.”