By Lisa Kerner
Charlotte, N.C., Aug. 3 – Northgate plc issued €100 million of 2.38% seven-year debt in a private placement to an institutional investor.
Proceeds were used to reduce the group’s principal bank facility, which has accordingly been reduced to £424 million from £499 million.
The company also renegotiated its bank facility as part of its debt refinancing, lowering the margin and extending the maturity by two years to June 2020.
All of the group’s financing is now unsecured.
“We have extended our debt maturity, reduced costs, locked into some well-priced long-term debt and removed the complex security arrangements,” group finance director Chris Muir said in an company news release.
The Darlington, England-based renter of light commercial vehicles and retailer of fleet products primarily does business in the United Kingdom, Ireland and Spain.
| Issuer: | Northgate plc
|
| Issue: | Debt
|
| Amount: | €100 million
|
| Coupon: | 2.38%
|
| Maturity: | Seven years
|
| Distribution: | Private placement
|
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