HSS successfully refinances, interest cost reduced

About this update from Proservice Building Services Marketplace Plc

[{"type":"text","content":"\n \n \n \n RNS Number : 8691R\n HSS Hire Group PLC\n 10 November 2021\n  \n \n \n  \n Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement\n  \n 10 November 2021\n  \n \n HSS Hire Group Plc\n \n \n Successful refinancing with interest cost materially reduced\n \n \n  \n \n HSS Hire Group plc (the \"Group\") today announces that it has entered into a new term loan facility of £70m and a revolving credit facility of £25m to refinance its existing corporate debt.\n  \n In the year ended 26 December 2020 the Group's senior finance facility interest charge was £16.3m. Alongside the successful change in operating model and equity placing in late 2020, the refinancing will materially reduce the ongoing annual interest charge to approximately £3.0m, driving a significant increase in earnings per share.\n The facilities will be provided by HSBC Bank plc and National Westminster Bank plc and will mature in November 2025 with the opportunity to extend by a further year. The facilities are at interest rates of between 275bps and 350bps above SONIA, dependent upon the net debt leverage ratio of the Group. The interest rate will be 300bps above SONIA at closing.\n  \n Closing of the new facilities is subject to customary conditions and is expected to take place by the end of November together with repayment of the Group's existing term loan facility. A repayment premium of circa £4.5m will be payable at this time to the provider of the Group's existing term loan facility.\n  \n Current Trading\n Trading since the Group's H1 Results update, announced 30 September 2021, continues to be strong and management now expects full year EBITDA and EBITA, on a non-IFRS16 basis, to be slightly ahead of market expectations. \n  \n Commenting on the news, Steve Ashmore, HSS Chief Executive Officer, said:\n \"This new refinancing package is another significant development for HSS, adding to the very positive strategic and operational progress that we have delivered over the last few years. It materially reduces our interest costs and improves both our EPS and free cash flow. With a much stronger financial platform and continued trading momentum across our business, HSS ...

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