Business
New Banking Facility
New Banking Facility.
About this update from Speedy Hire Plc
[{"type":"text","content":"\n \nRNS Number : 5542J Speedy Hire PLC 01 July 2011 \n \n\n \n1 July 2011\nSpeedy Hire PLC announces new banking facility \nSpeedy Hire Plc (\"Speedy\") announces the signing of a new £220m asset based revolving credit agreement with a syndicate of six banks to replace its existing £210m cash flow based loan facility, which was due to mature in June 2012. The facility will be used for general corporate purposes.\nThe facility, which matures in January 2015 with no prior scheduled repayment requirements, carries pricing of LIBOR plus 225bp to 400bp depending on leverage and on the components of the borrowing base. Initial drawings under the new facility will be at a blended rate of LIBOR plus c.325bp. This is c.25bp lower than the blended margin currently paid in respect of the previous facility. \nIn addition to four existing lending banks continuing to provide support to the Group, the bank syndicate has been strengthened by the addition of two new banks, Bank of America and GE Capital, who both have extensive experience of the US asset based lending market (where this type of facility is extensively used by the major rental companies). Lead arrangers are The Royal Bank of Scotland (\"RBS\"), Barclays Corporate, Bank of America and GE Capital and the other two lenders are Lloyds TSB and Burdale Financial (the asset based lending subsidiary of Bank of Ireland). RBS is the facility agent.\nAs a consequence of adopting an asset based financing solution, the Group's previous financial covenants have been reduced and simplified and headroom within the new facility has been increased.\nThe Group expects to record an exceptional financing cost of approximately £2.2m in the first half of the year for the non-cash write-off of the remaining unamortised balance of costs associated with the previous facility. Fees and expenses to establish the new facility will be amortised over the period to January 2015. For the remainder of the current financial year, this will involve a non-exceptional financing cost of approximately £1.0m.\nCommenting on the refinancing, Steve Corcoran, Chief Executive, said: \"We are delighted that our leading relationship banks have participated in the new revolving credit facility and that two new lenders have also joined the syndicate. The support of our banks in providing a facility which gives addit...