LONDON (ShareCast) - (Sharecast News) - Tool and equipment supplier HSS Hire Group has entered into a new term loan facility of £70.0m and a revolving credit facility of £25.0m following a successful campaign to refinance its existing corporate debt.

HSS Hire said on Wednesday that the new facilities would be provided by HSBC Bank and National Westminster Bank and will mature in November 2025, with the opportunity to extend by a further year.

The facilities were said to be at interest rates between 275 basis points and 350 basis points above the sterling overnight interbank rate, dependent upon the net debt leverage ratio of the group.

HSS noted that in the year ended 26 December 2020, its senior finance facility interest charge was £16.3m.

Alongside the "successful change in operating model and equity placing in late 2020", the AIM-listed firm said the refinancing would "materially reduce" its ongoing annual interest charge to approximately £3.0m, driving "a significant increase| in earnings per share.

Chief executive Steve Ashmore said: "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 is now well-positioned to deliver our next exciting phase of growth."

As of 0925 GMT, HSS Hire shares were up 5.67% at 18.74p.

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