01.04.2009

Speedy agrees loan amendment

Speedy Hire, the UK’s largest general rental company has agreed an amendment to the covenants on its £325 million loan facility that expires in 2012.

The loan facility has been amended to £300 million expiring in June 2012, additionally most of the covenants, including quarterly interest cover, leverage and cash flow cover covenant tests have been re-set to provide the Group with ‘sufficient headroom’ above the original ratios to cope with the current market conditions.

In consideration of this, the interest rate has increased and the company will pay a 1.5 percent amendment which was paid to the lenders yesterday.

Speedy says that it is confident that the revised covenants are appropriate for current market conditions and the Group's trading outlook over the term of the facility.

The company also says that trading in the quarter to the end of March have been difficult, but will be in line with expectations and at the lower end of the £33-38 million profit before tax and interest guidance provided in January.