Debt refinancing secured
Headlam Group PLC has secured a new £85 million asset-based lending facility with a three-year tenure, extendable for two additional years, replacing its existing revolving credit facility and overdraft. This new facility, provided by Barclays Bank plc and Wells Fargo Capital Finance (UK) Limited, is secured against certain Group assets and is expected to maintain similar interest rates and covenants to the previous arrangements. The company views this as a significant milestone in its transformation plan, providing enhanced liquidity and headroom as business needs evolve.
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Headlam (LSE: HEAD), the UK's leading floor coverings distributor, is pleased to announce an asset-based lending facility ("ABL") replacing our existing revolving credit facility ("RCF") and uncommitted overdraft.
The committed ABL, secured against certain Group assets, has a three year tenure (to January 2029) with the option to extend for up to two more. The facility of up to £85m flexes depending on the Group's asset base, with the intention being that it provides headroom and liquidity as the business needs evolve. The facility is provided by Barclays Bank plc and Wells Fargo Capital Finance (UK) Limited.
Based on current interest rates it is expected that the Group will pay a similar rate of interest on the new facility, with similar covenants applying.
The RCF was due to expire in October 2027.
Commenting, Stephen Bird, Interim Executive Chairman, said:
"We are pleased to have secured new financing, for up to five years, and deliver another important milestone in our transformation plan. We will provide additional information on our progress and future plans at our full year results in March."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.