{"id":3291,"date":"2018-07-15T17:36:34","date_gmt":"2018-07-15T16:36:34","guid":{"rendered":"https:\/\/anythingforhire.com\/news\/?p=3291"},"modified":"2018-07-19T17:39:39","modified_gmt":"2018-07-19T16:39:39","slug":"hss-hire-sign-245m-refinancing-deal","status":"publish","type":"post","link":"https:\/\/anythingforhire.com\/news\/hss-hire-sign-245m-refinancing-deal\/","title":{"rendered":"HSS Hire sign 245m refinancing deal"},"content":{"rendered":"<p>It\u2019s no secret that HSS Hire have experienced a rocky few years when it comes to profits. Announcing a crippling pre-tax loss of over \u00a380m for 2017, the tool <a href=\"https:\/\/anythingforhire.com\/about#how-it-works\">hire firm<\/a> has had no choice but to make some changes.  <\/p>\n<p>In a plea to create some equilibrium in the business, HSS Hire has announced details of a refinancing deal. According to sources, the firm looks to clear out major corporate debt, working with a new term loan facility of \u00a3220m. <\/p>\n<p>This will be provided by HPS Investment Partners and aims to inject some stability into the business.  <\/p>\n<p>In addition, HSS Hire will also work with a revolving credit facility of \u00a325m. <\/p>\n<p>Paul Quested, chief financial officer at HSS, said:  <\/p>\n<p>&#8220;We are very pleased to have successfully secured the long-term refinancing of the group. This now ensures that we have the appropriate facilities in place to continue delivering on our strategic priorities and the group&#8217;s full potential&#8221;. <\/p>\n<p>While introduced to manage debt in the business, the interest rates they have signed off on are marginally higher than the previous debt plan. As a result of these new financial structures, the business now forecasts a loss of just \u00a32.2m for this year. This does however differ from an earlier forecast of \u00a30.1m profit.  <\/p>\n<p>One broker, Numis Securities, shares their opinion on the new deal. <\/p>\n<p>\u201cThe two principal components of HSS&#8217;s previous debt structure were a quoted senior secured note of \u00a3136mln (with a rate coupon of 6.75%) that matured in 2019, and an RCF [revolving credit facility] of \u00a380mln (on which HSS was latterly paying LIBOR+3%, and was \u00a374mln drawn at 1-April-2018) that expired in July 2019,\u201d Numis said. <\/p>\n<p>\u201cThe new RCF, which will mature in December 2022, will be provided by HSBC and National Westminster, and pay interest at LIBOR+ 250-300bp [basis points], dependent on leverage. Management has not disclosed the leverage covenants of the new facilities (net debt\/EBITDA was 4.0x in April 2018); however, the new term loan will cover the cost of retiring the SSN [senior secured note], the old RCF facility and the re-financing costs, leaving the new RCF facility undrawn,\u201d the broker added. <\/p>\n<p>Let us know what you think; was this a wise move by HSS Hire?  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s no secret that HSS Hire have experienced a rocky few years when it comes to profits. Announcing a crippling pre-tax loss of over \u00a380m for 2017, the tool hire&#8230;<\/p>\n","protected":false},"author":4,"featured_media":3292,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"yst_prominent_words":[2994,1036,1046,1047,1591,1039,1022,1052,1049,2998,2995,2992,2990,2987,2991,2993,2989,2996,2997,2988],"class_list":["post-3291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news"],"amp_validity":null,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/posts\/3291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/comments?post=3291"}],"version-history":[{"count":1,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/posts\/3291\/revisions"}],"predecessor-version":[{"id":3293,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/posts\/3291\/revisions\/3293"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/media\/3292"}],"wp:attachment":[{"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/media?parent=3291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/categories?post=3291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/tags?post=3291"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/anythingforhire.com\/news\/wp-json\/wp\/v2\/yst_prominent_words?post=3291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}