21.03.2005

Ashtead raise $675 to fund expansion

Ashtead Group plc has raised $675 million (£360 million) with Lloyds TSB Commercial Finance appointed as UK lead agent on what is claimed to be the largest asset-based deal ever to be completed in the UK. The five year US $675 million (£360 million) revolving credit facility will allow UK listed equipment rental group, Ashtead Group plc, to invest further in its business at a time when non-residential US construction is exhibiting renewed growth.

Ashtead Group plc includes A-Plant in the UK, Sunbelt Rentals in the US and Ashtead Technology Rentals, which has offices in the UK, Singapore, the US and Canada. Since 1984 the Group has grown from a five-depot operation with a £1.5 million turnover, to one of the largest rental equipment groups in the world with over 6,000 employees and more than 400 rental stores. Annual turnover is now approximately £550 million and the Group fulfils the rental equipment needs of over 200,000 customers annually. The Group's rental fleet extends from larger equipment such as telehandlers and aerial work platforms to smaller equipment such as power saws, concrete finishing equipment and security fencing.

Commenting on the transaction, Terry Powell, global sales director of Lloyds TSB Commercial Finance said: "Ashtead Group plc is a company that is asset-rich and was perfectly suited to asset-based lending (ABL). The ABL solution provides Ashtead Group plc with up to $675 million of funding secured against its receivables, rental fleet, inventory and selected properties, leveraging all of the available assets in order to maximise the liquidity offered. We are extremely proud of the way in which this transaction met Ashtead's requirements and believe that, with the additional headroom now available, Ashtead will be able to take full advantage of its many business opportunities."

Ian Robson, finance director, Ashtead Group plc, added that: "Lloyds TSB Commercial Finance played a key role in ensuring that the new, innovative asset based facility fully met our needs in the UK. We are also delighted to have Lloyds TSB continue its long-established role as our lead UK banker."