Speedy Hire Speedy Hire gets vote of confidence with bank facilities extension
Equipment and plant hire firm Speedy has been granted an extension to its bank facilities with improved terms, which CEO Russell Down said was a demonstration of bankers' confidence in the business. Speedy's £180m ($237m) asset-based finance facility will now mature in October 2022, instead of September 2019, while interest margin ranges have been reduced from 170 to 275 basis points to 150 to 250 basis points.

Tools, equipment and plant hire services company Speedy Hire has secured an extension to its existing bank facilities.

The group said on Wednesday that the £180m asset based finance facility, which was due to mature in September 2019, has been extended by a further three years, through to October 2022. In addition, terms have been improved, which will lower the cost of Speedy’s debt financing.

The additional uncommitted accordion of £220m remains in place through to October 2022, should further funding requirements be needed.

The facility is split equally between Royal Bank of Scotland, Bank of America Merrill Lynch, Barclays, HSBC and Wells Fargo and the interest margin ranges from 150 to 250 basis points, down from 170 to 275 basis points previously.

Chief executive Russell Down said: "We are delighted with this successful outcome which reflects our bankers' confidence in the business. At 30 September net debt is now expected to be less than £65m, and this revised facility, with significant headroom, gives us greater flexibility to support our strategy for growth, and lowers our cost of debt."

At 0930 BST, the shares were down 0.2% to 51.40p.