Alumasc secures £20m bank funding
Building and engineering products supplier Alumasc has completed a £20m refinancing package. The Kettering-based company renewed its borrowing facilities from Barclays and HSBC.
The banking facilities, which were due to expire in May 2012, have been secured for a further five years.
Barclays and HSBC have provided the £20m package in equal participation. In addition, the banks will provide total overdraft facilities of £6m.
Andrew Magson, group finance director, said: "We are pleased to be working with Barclays and HSBC and to have completed the routine refinancing of the group ahead of our forthcoming year end.
"The five year committed borrowing facilities we have secured are intended to provide sufficient headroom to support the anticipated growth in Alumasc's business over that period, including the continued resurgence of Alumasc Precision, the recovery of our building products businesses from recession and increased export sales."
Despite higher lending margins across the banking market compared to four years ago when the previous facility was negotiated, Alumasc said it expected the new financing arrangements to result in a "modest reduction" in the group's overall effective interest rate.
The other principal terms of the new financing facilities are largely unchanged.
