HSS Hire Group PLC HSS successfully refinances, interest cost reduced (8691R)
November 10 2021 - 1:00AM
UK Regulatory
TIDMHSS
RNS Number : 8691R
HSS Hire Group PLC
10 November 2021
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
10 November 2021
HSS Hire Group Plc
Successful refinancing with interest cost materially reduced
HSS Hire Group plc (the "Group") today announces that it has
entered into a new term loan facility of GBP70m and a revolving
credit facility of GBP25m to refinance its existing corporate
debt.
In the year ended 26 December 2020 the Group's senior finance
facility interest charge was GBP16.3m. Alongside the successful
change in operating model and equity placing in late 2020, the
refinancing will materially reduce the ongoing annual interest
charge to approximately GBP3.0m, driving a significant increase in
earnings per share.
The facilities will be provided by HSBC Bank plc and National
Westminster Bank plc and will mature in November 2025 with the
opportunity to extend by a further year. The facilities are at
interest rates of between 275bps and 350bps above SONIA, dependent
upon the net debt leverage ratio of the Group. The interest rate
will be 300bps above SONIA at closing.
Closing of the new facilities is subject to customary conditions
and is expected to take place by the end of November together with
repayment of the Group's existing term loan facility. A repayment
premium of circa GBP4.5m will be payable at this time to the
provider of the Group's existing term loan facility.
Current Trading
Trading since the Group's H1 Results update, announced 30
September 2021, continues to be strong and management now expects
full year EBITDA and EBITA, on a non-IFRS16 basis, to be slightly
ahead of market expectations.
Commenting on the news, Steve Ashmore, HSS Chief Executive
Officer, said:
"This new refinancing package is another significant development
for HSS, adding to the very positive strategic and operational
progress that we have delivered over the last few years. It
materially reduces our interest costs and improves both our EPS and
free cash flow. With a much stronger financial platform and
continued trading momentum across our business, HSS is now well
positioned to deliver our next exciting phase of growth."
-Ends-
Disclaimer:
This announcement contains forward-looking statements relating
to the business, financial performance and results of HSS Hire
Group plc and the industry in which HSS Hire Group plc operates.
These statements may be identified by words such as "expect",
"believe", "estimate", "plan", "target", or "forecast" and similar
expressions, or by their context. These statements are made on the
basis of current knowledge and assumptions and involve risks and
uncertainties. Various factors could cause actual future results,
performance or events to differ materially from those described in
these statements and neither HSS Hire Group plc nor any other
person accepts any responsibility for the accuracy of the opinions
expressed in this presentation or the underlying assumptions. No
obligation is assumed to update any forward-looking statements.
Notes to editors
About HSS Hire
HSS Hire Group plc provides tool and equipment hire and related
services in the UK and Ireland through a nationwide network and its
OneCall rehire business. It offers a one-stop-shop for all
equipment through a combination of its complementary rental and
rehire business to a diverse, predominantly B2B customer base
serving a range of end markets and activities. Over 90% of its
revenues come from business customers. HSS is listed on the AIM
Market of the London Stock Exchange. For more information please
see www.hsshiregroup.com.
For further information, please contact:
HSS Hire Group plc Tel: 07557 491 860 (on 10 November
2021)
Steve Ashmore, Chief Executive Thereafter, please email: Investors@hss.com
Officer
Paul Quested, Chief Financial
Officer
Greig Thomas, Head of Group
Finance
Teneo
Tom Davies Tel: 07557 491 860
Charles Armitstead Tel: 07703 330 269
Numis Securities (Nominated Adviser Tel: 020 7260 1000
and Broker)
Stuart Skinner
George Price
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