New £200m senior debt facility

RNS Number : 7410E

Harworth Group PLC

15 March 2022

 

Harworth Group plc

("Harworth" or the "Company")

New £200m senior debt facility

Harworth Group plc, a leading regenerator of land and property for sustainable development and investment, is pleased to announce that it has agreed a new senior debt package comprising a five-year £200 million revolving credit facility ("RCF") together with a £40 million uncommitted accordion option, provided by Natwest, Santander and HSBC.

The facility replaces Harworth's previous RCF with Natwest and Santander, which was increased from £130 million to £150 million in 2021, and had an expiry date of February 2024.

The new RCF is aligned to Harworth's strategy to double the size of its business over the next five to seven years and provides significant additional liquidity and flexibility. The interest rate of the facility is on a ratchet mechanism with a margin payable above SONIA in the range of 2.25% to 2.50%.

Harworth's financing strategy remains to be prudently geared. Its Income Generation portfolio provides a recurring income source to service debt facilities and this is supplemented by proceeds from an established sales track record that has been built up since re-listing in 2015.

To deliver its strategic plan, Harworth has adopted a target net loan to portfolio value at year end of below 20%, with a maximum year end net loan to portfolio value of 25%. The Group will continue to use site-specific development and infrastructure loans alongside the main banking facilities to support the revised strategy.

Lynda Shillaw, Chief Executive at Harworth, said: "Harworth's strong balance sheet and prudent gearing is one of the key enablers of our ambitious growth strategy. This new debt package, which adds another established institutional lender to our banking group, will provide Harworth with additional firepower and flexibility as we step into this strategy and deliver our Purpose of creating places where people want to live and work. I would like to thank Natwest and Santander for their continued support, and to welcome HSBC."

For further information

Harworth Group plc
Lynda Shillaw (Chief Executive) Kitty Patmore (Chief Financial Officer) Tom Loughran (Head of Investor & Stakeholder Relations)	T: [phone] E: [e-mail]
FTI Consulting
Dido Laurimore Richard Gotla Eve Kirmatzis	T: [phone] E: [e-mail]

About Harworth

Listed on the Premium Segment of the Main Market, Harworth Group plc (LSE: HWG) is a leading sustainable regenerator of land and property for development and investment which owns, develops and manages a portfolio of over 15,000 acres of land on around 100 sites located throughout the North of England   and Midlands. The Group specialises in the regeneration of large, complex sites, in particular former industrial sites, into new residential and industrial & logistics developments. Visit www.harworthgroup.com for further information. LEI: 213800R8JSSGK2KPFG21

 

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