Northgate refinances debt facilities

3rd Aug 2015 08:29

(ShareCast News) - Northgate, a specialist in light commercial vehicle hire, announced a refinancing of the company's debt facilities.Northagate has issued a €100m, 2.38% seven-year debt private placement to an institutional investor. As a result, the group's principal bank facility has been reduced to £424m from £499m.In addition, the principal bank facility has been renegotiated at a lower margin and the maturity has been extended by a further two years to June 2020. The flexibility of the borrowing terms has been improved and all of the company's financing has been moved from a secured to an unsecured basis, with the key covenants remaining the same. Group finance director Chris Muir said "We are pleased to have completed this restructuring of our debt facilities. 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."