Severfield agrees new three-year banking facilities

(Sharecast News) - Severfield said on Friday that it had agreed new three-year banking facilities with its existing lending syndicate, extending its debt maturity profile and improving commercial terms.

The structural steel group said the refinancing, signed on 11 June, comprised a renewed £60m revolving credit facility and the continuation of a £7.6m term loan, which will amortise through to December 2027.

The agreement also includes an accordion option for up to a further £30m, subject to lender approval.

The facilities have an initial term running to June 2029, with two optional one-year extensions available on the revolving credit facility with lender consent.

Severfield's previous £60m revolving credit facility and £7.6m term loan had been due to mature in December 2027.

The group said the unsecured refinancing strengthened its liquidity and financial flexibility, with a reduced margin and more favourable covenant terms reflecting its improved financial position.

Severfield said the facilities would support its operational requirements, investment priorities and potential strategic opportunities across its UK and European markets.

Chief financial officer Andrew Page said the new agreement provided improved commercial terms and a strong platform to support future growth.

"The new facilities enhance our financial flexibility, extend our debt maturity profile and provide improved commercial terms reflecting the Group's strengthened financial position," he said.

"This refinancing reflects the strength of Severfield's market position, long-term customer relationships and resilient business model."

Severfield is due to publish its full-year results and a strategy update on 23 June.

At 1029 BST, shares in Severfield were up 1.89% at 27p.

Reporting by Josh White for Sharecast.com.

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