Refinancing

RNS Number : 7852U

Northgate PLC

03 August 2015

 



3 August 2015

NORTHGATE PLC

REFINANCING

Northgate plc ("Northgate", the "Company" or the "Group"), the UK and Spain's leading specialist in light commercial vehicle hire, is pleased to announce a  refinancing of the Company's debt facilities.

The Company has issued a €100 million, 2.38% seven year debt private placement to an institutional investor. The Group's principal bank facility has accordingly been reduced from £499m to £424m.

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 Group's financing has been moved from a secured to an unsecured basis. The key covenants remain the same.

Commenting on the above, Chris Muir, Group Finance Director, 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."

For further information, please contact:

Northgate plc                                                            01325 467558

Bob Contreras, Chief Executive

Chris Muir, Group Finance Director

MHP Communications                                           020 3128 8100

Barnaby Fry

Simon Hockridge

Jack Holden

Notes to Editors:

Northgate plc is the leading light commercial vehicle hire business in the UK, Ireland and Spain by fleet size and has been operating in the sector since 1981.

Northgate's core business is the hire of light commercial vehicles to businesses on a flexible basis, giving customers the ability to manage their vehicle fleet requirements in a way which can adapt to changing business needs without the requirement to enter into a long term commitment. Further information regarding Northgate plc can be found on the Company's website:

www.northgateplc.com

 

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MSCLLFIEDDILVIE