UK construction equipment leasing company
Speedy Hire has signed a £220 million credit facility with a
syndicate of six banks as part of a recovery and growth
The asset-based facility replaces the
company’s existing cash flow-based loan of £210 million which was
due to mature in January 2012.
The Royal Bank of Scotland and Barclays
Corporate, as lead arrangers in the deal, and Lloyds Banking and
Burdale Financial as additional lenders, continue their
relationship as lenders to Speedy Hire having provided the previous
loan as part of another syndicate.
Bank of America and GE Capital join the bank
syndicate for this deal. RBS also acted as facility agent.
Steve Corcoran, chief executive of Speedy
Hire, said the deal demonstrated the strength of the company’s
balance sheet and the quality of its asset base.
The facility matures in January 2015 with no
prior scheduled repayment requirements. The facility is priced at
250 bps to 400 bps over LIBOR. The deal has a margin ratchet, which
flexes depending on the ratio of debt to earnings.
Initial drawings under the new facility will
be at a rate of LIBOR plus 3.25 percent, 0.25 percent lower than
the margin currently paid in respect of the previous facility.
Corcoran said the deal provides Speedy Hire,
which has 10 percent share in the UK equipment rental market, with
additional headroom and added: “We now have certainty with regard
to our medium term funding; this is another key step in our
recovery and will underpin our strategy to grow the business in the
Speedy Hire is based in Wigan and specialises
in construction, infrastructure, utilities and heavy plant