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(Sharecast News) - Building materials distributor Lords Group has completed the refinancing of an existing 75m loan, which it expects to result in "material" cost savings for the company.
The existing 75m loan, comprised of a 50m revolving credit facility (RCF) and a 25m receivables financing facility (RFF), was fully cancelled and repaid.
It will be repaid by a new 65m facility, consisting of a 20m RCF and a 45m RFF, each with an initial three-year term. The new agreement, with HSBC and NatWest, includes two extension options of one year each.
Lords said the new loan is more in line with its trading activities and track record in converting receivables into cash, and should "result in material interest cost savings for the group over the life of the facilities".
"We are pleased to complete this refinancing exercise and appreciate the support of our lenders, both with regard to the existing facilities and, in particular, look forward to continuing our strong relationship with HSBC and NatWest under the new facilities," said Lords' chief financial officer Stuart Kilpatrick.
Lords shares were up 2.8% at 17.73p by 1024 GMT.
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