Interserve seals £180m lending deal for extra headroom

Aaron Morby 11 months ago
Share

Interserve has secured a short-term funding deal with its banks to help the construction group battle with its debts.

The firm revealled it has reached an agreement with key lenders to push back the test date for compliance with its loan covenants to March 2018. 

Debbie White, Interserve’s chief executive, said the agreement provided more room for discussions with the lenders, with a view to securing its longer-term funding.

The new facilities totalling £180m, comprise a £38m committed revolving credit facility, £37m of committed ancillary facilities, committed bonding facilities of £93m plus £12m of additional funding available by agreement with the lenders. 

In order to obtain these facilities, Interserve has agreed to close out its cross-currency swaps, which hedge exchange rate exposure on existing US private placement loan notes.

The £44m proceeds will be used to repay existing borrowings from current bank facilities.

White said: “Securing these agreements puts Interserve on a firmer footing.

“While there is still much to do, Interserve has significant opportunities based upon a strong client base and our dedicated employees.

“There is considerable potential for business improvement across the group.

“These short-term committed borrowing facilities, together with the ongoing work to clearly define the strategy and commercial structure for the business going forward, will bring further stability and clarity for our clients, our people and our shareholders.”

In September, Interseve launched a group wide performance improvement plan, Fit for Growth, aimed at improving cash and margin performance.

As part of this plan, Interserve said it would scrutinise its operating model and the cost base while focusing on market segments that were profitable and offered opportunity for growth.

 

Latest news

Kier on track with debt reduction efforts

Kier chief says firm is chipping away at £410m debt mountain
1 day ago

Winners revealed of £22m fund for on-site training hubs

Full list of 26 winners for new initiative to train on live construction sites
23 hours ago

Bouygues UK south east chief exits

Darren Gill leaves after 22 years at Bouygues Construction
1 day ago

Wates wins £82m London Haringey tower job

Work starts on developer Anthology's 32-storey Hale Works resi block
1 day ago

B&K tipped for £60m Nottingham HMRC hub

Developers seal forward funding for Unity Square scheme
2 days ago

Regal to build £55m Lords retirement homes block

Over 55s housing scheme will be build next to London cricket ground
2 days ago

Caledonian takes £25m Wembley student pods order

Offsite specialist will deliver 680 bedroom modules for high-rise First Way Campus
2 days ago

Robertson wins pair of Glasgow hotel jobs

Marriott and Moxy hotels to be built next to SSE Hydro venue
2 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
7 months ago

Kier raises £24m from Australian road business sell-off

KHSA road assets and management services business offloaded to pay down debt
2 days ago

Wates rejigs construction senior management

Mark Tant promoted to new managing director role at construction division
3 days ago

Stansted Airport expansion wins council approval

Ambitious airport expansion plans scrape through local planning
2 days ago

Robot bricklayer builds house in under three days

Tech company hails a "quantum leap for the construction industry"
2 days ago

Lendlease lands Oxford Street office and retail scheme

Main construction work to start early next year at Oxford House
2 days ago

Green light for 335 PRS flats in Sheffield

Work to start next year on multi-block Sylvester Street scheme
2 days ago

Alun Griffiths signs £70m final phase Worcester link road

Contractor to start work in March on A4440 Worcester Southern Link Road
3 days ago

Interserve fights to quell stock market jitters

Share price rallies after plunging to all time low yesterday as group denies crisis
3 days ago

Crossrail contractors facing overtime clawback

Bills questioned in race to get the job completed
3 days ago

Heathrow names airport expansion delivery boss

KPMG's Emma-Jane Houghton joins in February and is in charge of procurement, contracts and costs
3 days ago

British Land aims to start £385m London project duo

Developer looks to start major Shoreditch scheme and Paddington hotel within 12 months
3 days ago

Work to start on Sheffield Park Hill estate student scheme

Work to start early next year on plan to convert former housing block to student rooms
3 days ago

East London raid saves modern slavery victims

Man arrested and six potential victims safeguarded
3 days ago

Contractor closes down concrete products business

Mounting losses force Concrete Products (Kirkcaldy) to cease trading
4 days ago

Payroll company ceases trading blaming VAT changes

Sprite shuts down as tax change looms which could have huge impact on construction
4 days ago

HS2 unveils Crewe Link £1.6bn civils bid plan

HS2 Phase 2a to be split into two civils packages worth over £750m
4 days ago

Plan for Sheffield’s tallest building approved

32-storey private rental flats scheme gains outline planning
4 days ago

McCarthy & Stone plans more competitive tendering regime

Retirement homes specialist advances building cost reduction plan
4 days ago

£384m North London community scheme approved

Britannia Leisure scheme will be built next to Shoreditch Park in Hackney
4 days ago

Forrest sites closed as contractor tries to refinance business

Company denies administration rumours as talks with banks continue
5 days ago

Pre-construction work starts on £1bn Silvertown Tunnel

Specialist ITM Monitoring lands deal under pioneering Tfl framework
5 days ago

Contractor services