Metalrax agrees £14m bank finance deal

ALVECHURCH engineering plc Metalrax has successfully completed its bank facility refinancing on what it describes as “improved terms”.

The niche supplier of specialist engineering and consumer durable products had an existing facility which lasted until August this year but it has now agreed terms on a new deal up to £14m for four years with The Royal Bank of Scotland.

Metalrax says the new deal will result in reduced borrowing costs, saving it around £300,000 a year.

The facilities, being mainly provided by the bank’s asset-based lending (ABL) team, are secured against the firm’s properties, the debtor ledger, plant and machinery as well as inventory.

Metalrax group chief executive Andrew Richardson said: “This is a very important milestone for the group. The new facilities have been agreed ahead of schedule and on competitive terms.

“Completion of this refinancing provides a stable platform in challenging times with unpredictable economic conditions. The group’s priorities are to achieve growth whilst continuing to reduce borrowings.”