Eversheds has advised Northgate plc, the UK and Spain's leading specialist in light commercial vehicle hire, on a debt refinancing.

Northgate has extended the maturity of its debt, reduced the pricing of its principal banking facility, and issued a debt private placement to lock-into current low, long-term interest rates.

The company’s previous bank facility was for approx. £500 million and was due to mature in June 2018.  It has been amended, with the existing relationship banks, at approx. £424 million due June 2020, at a lower margin and commitment fee than previously.  In addition, the Company has issued a €100 million 2.38% 7-year debt private placement to an institutional investor.  The key covenants are the same as previously, but all the financing has been moved from a secured to an unsecured basis.

The Eversheds team was led by partner Nigel Dale.

Nigel commented:

“This is a strategic deal which will stand Northgate in good stead as they continue to cement their position as leaders in the market.”

Chris Muir, Group Finance Director commented: 

“These are important transactions for the company.  We have extended our debt maturity, reduced the cost, locked-into some well-priced long-term debt, and removed the complex security arrangements. Eversheds were intrinsic in supporting us throughout this process and ensuring the debt refinancing progressed smoothly."