REG - HSS Hire Group PLC - HSS successfully refinances, interest cost reduced

HSS HireAnnouncement

10/11/2021 07:05

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211110:nRSJ8691Ra&default-theme=true

RNS Number : 8691R  HSS Hire Group PLC  10 November 2021

 

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement

 

10 November 2021

 

HSS Hire Group Plc

Successful refinancing with interest cost materially reduced

 

HSS Hire Group plc (the "Group") today announces that it has entered into a
new term loan facility of £70m and a revolving credit facility of £25m to
refinance its existing corporate debt.

 

In the year ended 26 December 2020 the Group's senior finance facility
interest charge was £16.3m. Alongside the successful change in operating
model and equity placing in late 2020, the refinancing will materially reduce
the ongoing annual interest charge to approximately £3.0m, driving a
significant increase in earnings per share.

The facilities will be provided by HSBC Bank plc and National Westminster Bank
plc and will mature in November 2025 with the opportunity to extend by a
further year. The facilities are at interest rates of between 275bps and
350bps above SONIA, dependent upon the net debt leverage ratio of the Group.
The interest rate will be 300bps above SONIA at closing.

 

Closing of the new facilities is subject to customary conditions and is
expected to take place by the end of November together with repayment of the
Group's existing term loan facility. A repayment premium of circa £4.5m will
be payable at this time to the provider of the Group's existing term loan
facility.

 

Current Trading

Trading since the Group's H1 Results update, announced 30 September 2021,
continues to be strong and management now expects full year EBITDA and EBITA,
on a non-IFRS16 basis, to be slightly ahead of market expectations.

 

Commenting on the news, Steve Ashmore, HSS Chief Executive Officer, said:

"This new refinancing package is another significant development for HSS,
adding to the very positive strategic and operational progress that we have
delivered over the last few years. It materially reduces our interest costs
and improves both our EPS and free cash flow. With a much stronger financial
platform and continued trading momentum across our business, HSS is now well
positioned to deliver our next exciting phase of growth."

 

 

-Ends-

 

 

 

 

Disclaimer:

 

This announcement contains forward-looking statements relating to the
business, financial performance and results of HSS Hire Group plc and the
industry in which HSS Hire Group plc operates. These statements may be
identified by words such as "expect", "believe", "estimate", "plan", "target",
or "forecast" and similar expressions, or by their context. These statements
are made on the basis of current knowledge and assumptions and involve risks
and uncertainties. Various factors could cause actual future results,
performance or events to differ materially from those described in these
statements and neither HSS Hire Group plc nor any other person accepts any
responsibility for the accuracy of the opinions expressed in this presentation
or the underlying assumptions. No obligation is assumed to update any
forward-looking statements.

 

Notes to editors

About HSS Hire

 

HSS Hire Group plc provides tool and equipment hire and related services in
the UK and Ireland through a nationwide network and its OneCall rehire
business. It offers a one-stop-shop for all equipment through a combination of
its complementary rental and rehire business to a diverse, predominantly B2B
customer base serving a range of end markets and activities. Over 90% of its
revenues come from business customers. HSS is listed on the AIM Market of the
London Stock Exchange. For more information please see www.hsshiregroup.com.

 

 

For further information, please contact:

 

 HSS Hire Group plc                         Tel: 07557 491 860 (on 10 November 2021)
 Steve Ashmore, Chief Executive Officer     Thereafter, please email: Investors@hss.com
 Paul Quested, Chief Financial Officer
 Greig Thomas, Head of Group Finance

 

 Teneo
 Tom Davies                                                                                                          Tel: 07557 491 860

 Charles Armitstead                                                                                                  Tel: 07703 330 269

 Numis Securities (Nominated Adviser and                                                                             Tel: 020 7260 1000
 Broker)
 Stuart Skinner

 George Price

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUPGMCGUPGPPB