Refinancing of Banking Facilities
Severfield plc has successfully refinanced its banking facilities, securing a new three-year agreement with its existing lending syndicate that extends to June 2029. This refinancing replaces the previous £60 million revolving credit facility and £7.6 million term loan with a renewed £60 million RCF, a continued £7.6 million term loan, and a new accordion option for up to an additional £30 million. The improved commercial terms, including a reduced margin and more favourable covenants, reflect the Group's strengthened financial position and enhance its liquidity and flexibility to support ongoing operations, investments, and future strategic opportunities.
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Severfield plc ("Severfield" or the "Group"), the market-leading structural steel group, is pleased to announce that it has signed a new three-year banking facility agreement with its existing lending syndicate on 11 June 2026.
The Group's existing banking facilities, comprising a £60m revolving credit facility ("RCF") and a £7.6m term loan, were due to mature in December 2027. The new agreement comprises:
- a renewed £60m revolving credit facility ("RCF");
- a continuation of the £7.6m term loan facility, amortising through to December 2027; and
- a new accordion option of up to an additional £30m, subject to lender consent.
The facilities have an initial three-year term, running to June 2029, with two one-year extension options on the RCF subject to lender consent. The refinancing replaces the Group's existing facilities and further strengthens Severfield's liquidity position and financial flexibility.
The facilities remain unsecured and continue to be provided by a strong syndicate of relationship banks, with improved commercial terms reflecting the Group's strengthened financial position, including a reduced margin and more favourable covenant terms
The refinancing provides Severfield with substantial committed liquidity and enhanced financial flexibility to support the Group's operational requirements, ongoing investment priorities and future strategic opportunities across its core UK and European markets.
Andrew Page, Chief Financial Officer, said:
"We are pleased to have successfully completed this refinancing with the continued support of our banking partners. The new facilities enhance our financial flexibility, extend our debt maturity profile and provide improved commercial terms reflecting the Group's strengthened financial position, as well as a strong platform to support the Group's future growth opportunities.
"This refinancing reflects the strength of Severfield's market position, long-term customer relationships and resilient business model. We thank our lenders for their continued support and confidence in the Group."
The Group looks forward to presenting its full year results and strategy update on 23 June 2026.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.