International law firm Pinsent Masons has advised Lloyds TSB Bank plc, Santander UK, HSBC Bank plc and The Royal Bank of Scotland plc on certain banking facilities forming part of £535 million worth of financing arrangements for Costain Group PLC in connection with its proposed all-share merger with May Gurney Integrated Services PLC.

The merger, which was announced to the markets on 27 March, will – if completed – create one of the leading integrated services providers in the UK.

The transaction required the raising of £95m of new term and revolving credit facilities, together with simultaneous completion of consents, waivers and amendments to ensure the continued availability of £125m of bilateral bonding, cash advances and overdraft facilities, £275m of bilateral surety facilities and Costain's existing £45m revolving credit facility.

The transaction was led for Pinsent Masons by London head of banking, Martin Bishop, who was assisted by Liam Terry, Anaïs Spacey and corporate department senior associate, James Broadhurst.  Martin Bishop commented:

"Pinsent Masons has advised Costain's banks on several financings for Costain and we are very pleased to played a role in facilitating one of the most significant transactions in the infrastructure sector for some time. Looking ahead we are likely to see further consolidation in the sector and this deal is proof positive that bank funding is available for well-considered M&A activity."

Slaughter & May advised Costain and Maxwell Winward advised the surety providers.

http://www.pinsentmasons.com/en/media/press-releases/2013/pinsent-mason…