Halfords completes £200m refinancing in Birmingham-led deal
MIDLAND automotive and leisure retailer Halfords has secured a new £200m refinancing of its debt facilities in a deal lead out of Birmingham.
The Redditch-based group, which also operates the Autocentres vehicle maintenance network, said the new revolving credit facility would mature in November 2017.
“The group has the option to extend this committed facility by a further year. The financial covenants remain unchanged from the previous £300m facility that was due to mature in November 2014,” it said in a statement to the London Stock Exchange.
The refinancing arrangement has been backed by HSBC’s Midlands Corporate team. HSBC acted as Mandated Lead Arranger on the £200m and the five-bank club deal was led locally by HSBC Senior Corporate Banking Manager Pete Wood.
The bank said the deal marked the beginning of a new banking relationship between HSBC and Halfords.
Halfords operates more than 460 stores across the UK and Ireland, as well as around 300 Halfords Autocentres. The company employs around 12,000 people and sells approximately 10,000 product lines in store, extending to 30,000 lines online.
Mark Harris, HSBC’s Midlands Head of Corporate Banking, said: “Halfords has a high calibre management team, who have continued to develop the company’s strong position in its key markets.
“The brand is synonymous with motorists and cyclists throughout the UK and the company is looking to build on that strong position going forward, supported by this latest refinance. HSBC is pleased to have played a key role in the £200m refinance and we are excited about working Halfords going forward.”
