Light commercial vehicle hire
specialist Northgate has signed a comprehensive debt refinancing
package.
The package includes a new
eight-year £100 million (€114 million) term loan facility from the
Prudential/M&G UK Companies Financing Fund, as well as a
committed bank facility, and existing loan notes.
The term loan facility is repayable in
three equal instalments in October 2017, April 2018 and April 2019.
The bank facility has an extended maturity of September 2014
–initially £470 million (€533.7 million) in size – and shrinking to
£395 million (€449 million) in November 2012.
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Interest costs
under the committed bank facility are projected to save Northgate
£1.3 million (€1.5 million) in the year to end April 2012, compared
to the bank facility it is replacing.
Northgate’s existing loan notes –
currently amounting to the equivalent of £173 million (€196.4
million) – are to remain invested until their original maturity
dates, between November 2012 and December 2016, and at their
current coupon rates.
The combined refinancing package gives the company £743 million
(€844 million) of committed facilities up to the year ending 30
April 2012, and £620 million (€704 million) up to the year-end in
April 2013.
A spokesman for Northgate said: “The
facilities were due for renewal in September 2012.
“There was some eagerness to get
started now as that removes financing uncertainty for the group.
The nearer you get to the deadline, the harder it is to
negotiate.”
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By GlobalDataclaire.hack@vrlfinancialnews.com
