VOLUTION Group, a British supplier of ventilation products to the residential construction market, yesterday signed a new and enlarged £90m multicurrency revolving credit facility.
The Crawley-based company – which once supplied air ducts to 10 Downing Street when Winston Churchill was an inhabitant in World War II – signed the agreement with HSBC, Royal Bank of Scotland and Danske Bank. The loan has a duration of roughly four years, maturing on 30 April 2019.
The new facility replaces Volution’s existing loans, which were due to expire in February 2018 and February 2019. The company said the funds will significantly reduce its interest costs along with increasing the flexibility and headroom of its banking arrangements. The loan will lower the Volution’s effective financing cost by approximately 90 basis points over Libor, with the firm’s gross debt amount diminishing by around £12m as a result.
“The refinancing strengthens our financial position, helping to underpin the group’s strategy to grow, both organically and through selective acquisitions,” said Ronnie George, Volution’s chief executive officer. “The terms of the new facility reflect the banks’ confidence in the group’s strategic prospects and credit quality.”