Refinancing Arrangements, Pension Scheme Valuation
Refinancing secured with BZ Commercial Finance: £27m term loan and £9m revolving facility, replacing existing debt at higher margin.
- New Term Loan £27m
- New Revolving Credit Facility £9m
- Margin increase circa 1.75%
- Pension scheme lump sum payment £5.1m
- Annual pension contribution (3 years) £3.5m gross
- Pension Technical Provisions deficit (31 March 2024) £64.5m
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The Board of Carclo plc is pleased to announce that the Group has agreed refinancing arrangements with Carclo's new lending partner, BZ Commercial Finance DAC ("BZ") and has also agreed the scheme funding for the Carclo Group Pension Scheme, with an associated revised schedule of contributions.
This is an important step for the Group enabling it to continue to invest in the business and allow the Group to deliver on its strategy.
The new facilities with BZ comprise a Term Loan of £27m and a Revolving Credit Facility of £9m, replacing the existing facility. This represents an increase in margin of circa 1.75% over the comparable previous facilities.
In parallel, the Group has reached agreement with the Trustees of the Pension Scheme in respect of both the actuarial deficit and the resultant deficit repair contributions to be made in accordance with a recovery plan that details the contributions due over the term of the new financing arrangement with BZ and for a period beyond, to meet the statutory funding objective.
A sum of £5.1m has been paid to the Pension Scheme on completion of the refinancing, with an additional £3.5m (in line with previous years) gross annual contribution to be paid in each of the three subsequent years. The Technical Provisions actuarial deficit, as at 31 March 2024 was £64.5m (31 March 2021 £82.8m).
Frank Doorenbosch, CEO, commented:
"This refinancing represents a transformative reset of our financial foundation. Our new facility with BZ, alongside the significant reduction in our pension deficit, is far more than a technical financial transaction - it embodies our commitment to the continuing transformation of Carclo.
We now stand ready to accelerate our growth trajectory with greater confidence and capability. The Board and I extend our appreciation to our dedicated employees, loyal customers, collaborative suppliers, and supportive shareholders who have been instrumental in achieving this milestone. Together, we are a stronger business and Carclo is well positioned to deliver enhanced value for all our stakeholders in the years ahead."
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