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Sun September 27 2020

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Speedy agrees new funding deal

1 Jul 11 Speedy Hire has signed a new £220m credit deal with a syndicate of six banks to refinance the business.

The company described the deal as a “key step in our recovery”.

The asset based revolving credit agreement replaces an existing £210m cash flow based loan facility, which was due to mature in June 2012.

The facility will be used for general corporate purposes, Speedy said.

Speedy’s four existing lending banks - RBS, Barclays, Lloyds TSB and Burdale Financial (the asset based lending subsidiary of Bank of Ireland) – have been joined in the syndicate by 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.

Chief executive Steve Corcoran 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 additional headroom and is more flexible is a great vote of confidence and illustrates both the strength of our balance sheet and the quality of our asset base. 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 years ahead."

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