3rd Aug 2015 07:01
LONDON (Alliance News) - Northgate PLC on Monday said it has refinanced its debt facilities.
The commercial vehicle hire company said it has issued a EUR100 million, 2.38% seven-year debt private placement to an institutional investor.
It said its principal bank facility has been reduced to GBP424 million from GBP499 million.
The company said its principal bank facility has been renegotiated at a lower margin and the maturity has been extended by two years to June 2020.
It said the flexibility of its borrowing terms has been improved, and that its financing has been moved to an unsecured from secured basis. The key covenants remain the same, the company said.
"We have extended our debt maturity, reduced costs, locked into some well-priced long term debt and removed the complex security arrangements. We would like to thank our existing lenders for their ongoing support and welcome our new institutional debt investor," Finance Director Chris Muir said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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