REG - Lords Group Trading - Refinancing of Group Lending Facilities

Lords TradingAnnouncement

06/04/2023 07:00

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RNS Number : 5585V  Lords Group Trading PLC  06 April 2023

     6 April 2023

 

Lords Group Trading plc

('Lords' or the 'Group')

 

Refinancing of Group Lending Facilities

 

Lords, a leading distributor of building materials in the UK, is pleased to
announce that it has completed the refinancing of the Group's existing £70
million lending facilities (the 'Refinancing').

 

The Group's existing £70 million lending facilities with HSBC , consisting of
a £50 million revolving credit facility ('RCF') and a £20 million
receivables financing facility ('RFF') (together the "Existing Facilities"),
have been cancelled and repaid pursuant to the Refinancing with such repayment
being funded by drawings under new £95 million facilities provided by HSBC,
NatWest and BNP Paribas consisting of a £70 million RCF (the "New RCF") and a
£25 million RFF each with an initial three-year term (together, the "New
Facilities").

 

The New RCF includes: (i) a £20 million uncommitted accordion option which
would, subject to lender approval, allow the Group to increase the New RCF
facility limit if required, and (ii) two uncommitted extension options of one
year each which would, subject to lender approval, extend the tenor of the New
RCF to four years and five years if exercised.

 

The New Facilities are on improved commercial terms compared to the Existing
Facilities and are expected to result in material interest cost savings for
the Group over the three-year term of the facilities.

 

The New Facilities support the Group's medium term growth ambitions, including
anticipated funding for acquisitions, as well as meeting working capital
requirements.

 

Grant Thornton LLP were financial advisors to the Group on the Refinancing.
DAC Beachcroft LLP were borrower counsel and Pinsent Masons LLP were lender
counsel.

 

Chris Day, Chief Financial Officer and Chief Operating Officer of Lords, said:
"We are delighted to complete this Refinancing exercise. The new and improved
facilities support our strategic ambitions and we are very pleased to have
three partner banks supporting the Group on its corporate journey. We look
forward to working with our banks and our other stakeholders on delivering our
business plan."

 

- Ends -

 

FOR FURTHER ENQUIRIES:

 

 Lords Group Trading plc                                     Via Buchanan
 Shanker Patel, Chief Executive Officer                      Tel: +44 (0) 20 7466 5000
 Chris Day, Chief Financial Officer

 Cenkos Securities plc (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 7397 8900
 Ben Jeynes / Max Gould (Corporate Finance)
 Alex Pollen (Sales)

 

 Berenberg (Joint Broker)                               Tel: +44 (0)20 3207 7800

 Matthew Armitt / Richard Bootle / Detlir Elezi

 Buchanan Communications                                Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Jamie Hooper / Abby Gilchrist  LGT@buchanan.uk.com (mailto:LGT@buchanan.uk.com)

 

Notes to editors:

 

Lords is a specialist distributor of building, plumbing, heating and DIY
goods.  The Group principally sells to local tradesmen, small to medium sized
plumbing and heating merchants, construction companies and retails directly to
the general public.

 

The Group operates through the following two divisions:

 

·  Merchanting: supplies building materials and DIY goods through its
network of merchant businesses and online platform capabilities.  It operates
both in the 'light side' (building materials and timber) and 'heavy side'
(civils and landscaping), through 26 locations in the UK.

 

·    Plumbing and Heating: a specialist distributor in the UK of plumbing
and heating products to a UK network of independent merchants, installers and
the general public.  The division offers its customers an attractive
proposition through a multi-channel offering.  The division operates over 16
locations enabling nationwide next day delivery service.

 

Lords was established over 35 years ago as a family business with its first
retail unit in Gerrards Cross, Buckinghamshire.  Since then, the Group has
grown to a business operating from 42 sites.  Lords aims to become a £500
million turnover building materials distributor group by 2024 as it grows its
national presence.

 

Lords was admitted to trading on AIM in July 2021 with the ticker LORD.L.
 For additional information please visit www.lordsgrouptradingplc.co.uk
(http://www.lordsgrouptradingplc.co.uk/) .

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