North Holdings Group has signed a new £450 million senior revolving credit facility with a syndicate of six relationship banks. The facility has a five-year term with two one-year extension options, and replaces two facilities that were due to mature in 2027 and 2028.
The refinancing extends the group’s average debt maturity from 2.8 to 4.6 years and simplifies the covenant package to a single leverage test and an interest cover test. Pricing is linked to a small number of sustainability measures, including the group’s lost-time injury frequency rate and Scope 1 and 2 emissions.
“The banks have backed this group through a full cycle, and the terms reflect that,” said Priya Raghunathan, Group Chief Financial Officer. “A longer maturity profile gives our divisional teams the certainty they need to commit to multi-year contracts and fleet orders.”