One-51 agrees extension to €200m bank facilities
The revised credit facility expires in June 2013. One-51 said that the terms of the deal are “competitive in the current banking environment”, but admitted too that they represent an increase to its previous borrowing costs which were agreed in 2006.
It had been privately speculated that the group could find it difficult to reach any refinancing agreement with the banks by the end of this year.
Commenting yesterday, Mr Lynch said he was “very pleased” to have reached agreement so far in advance of the expiry of the previous agreement with the company’s banks.
“This facility gives the group good headroom over anticipated borrowing requirements. We’re also pleased to retain the support of our banking group, who have supported One-51 since its inception,” he said.
The fact that the new lending facility is with the same six banks — Bank of Ireland, AIB, Bank of Scotland, KBC Bank, Rabobank and Ulster Bank — is also being viewed as a vote of confidence in One-51, which holds significant stakes in the likes of NTR and Irish Continental Group (ICG).
One of those banks — Bank of Ireland — publicly placed its support behind the group yesterday. Noting that the bank has worked successfully with One-51 from its inception and through its growth phase and ongoing development to its current strategic positioning, Bank of Ireland Corporate Banking director, Sean Barrett said: “We’re delighted to have completed this refinancing and look forward to supporting the group through its next phase of development.”
One-51’s 2010 results are set to be made available to shareholders “shortly”, but it is already thought these will show a strong contribution from its ClearCircle environmental services division. Mr Lynch said yesterday that the group’s borrowing stood at €147m at the end of last year (down from a peak of €250m).
