Lords Group refinances, expands lending facilities
By Josh White
Date: Thursday 06 Apr 2023
(Sharecast News) - Building materials distributor Lords Group said on Thursday that it has completed the refinancing of its existing £70m lending facilities.
The AIM-traded firm said the refinancing included cancelling and repaying the existing facilities with HSBC, and replacing them with new £95m facilities provided by HSBC, NatWest, and BNP Paribas.
It said the new facilities consisted of a £70m revolving credit facility, and a £25m receivables financing facility, each with an initial three-year term.
The new revolving credit facility included an uncommitted accordion option of £20m, which would allow the group to increase the facility limit subject to lender approval if needed.
It added that the new facilities also included two uncommitted extension options of one year each, which would extend the tenor of the new revolving credit facility to four years, and five years if exercised, subject to lender approval.
Lords said the new facilities were on improved commercial terms compared to the existing facilities, and were expected to result in material interest cost savings for the group over the three-year term of the facilities.
The new facilities would support the company's medium-term growth ambitions, including anticipated funding for acquisitions, as well as meeting working capital requirements.
"We are delighted to complete this refinancing exercise," said chief financial and operating officer Chris Day.
"The new and improved facilities support our strategic ambitions and we are very pleased to have three partner banks supporting the group on its corporate journey.
"We look forward to working with our banks and our other stakeholders on delivering our business plan."
At 1432 BST, shares in Lords Group Trading were up 1.76% at 69.19p.
Reporting by Josh White for Sharecast.com.
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10 Lower Thames St,
London EC3R 6EN