Harworth Group has agreed a new £275m revolving credit facility (RCF) with its existing syndicate of lenders.
The new facility, which replaces Harworth’s existing £240m facility and extends the group’s debt maturity by approximately 2.5 years, includes an uncommitted accordion option, which if exercised would take the RCF to £325m.
The facility has an improved core margin of 200 basis points over SONIA, with an initial four-year term, which may be extended to a maximum of five years at Harworth’s request, subject to bank consent.
The syndicate comprises NatWest, Santander and HSBC, with the option to add further lenders.
Kitty Patmore, chief financial officer of Harworth, said: “We have been able to take advantage of favourable market conditions, and the strong relationships we have with our core blue-chip banking partners, to refinance our RCF on improved terms. It extends the duration of our bank facilities to the end of 2029, reduces our costs and provides increased flexibility to invest in our pipeline of sites, as we look to optimise our balance sheet. Our target net loan-to-portfolio value of below 20% at year-end and 25% throughout the year remains unchanged.”
