LONDON (Alliance News) - Augean PLC Tuesday said it has refinanced and increased its banking facilities with HSBC Bank PLC, as it seeks to fund its growth over the next four years.
In a statement, the waste management business said the new facility provides GBP15.0 million of debt funding, up from GBP10.0 million previously.
"The increased loan quantum and slightly extended term is expected to provide the group with access to the funding it requires to support the growth of the business over the next 4 years," Richard Allen, finance director, said in a statement.
The new debt facility is subject to certain covenants, similar to those previously in place, including the cover of interest costs and the ratio of net debt to earnings before interest, tax, depreciation and amortisation.
Augean said it met its short-term working capital requirements, and supported certain capital investments, through an overdraft and revolving loan facility with HSBC, part of HSBC Holdings PLC, in 2013.
It had been due for renewal on March 2, 2015, but Augean said it agreed to bring the date forward, "ensuring that at least 12 months of committed loan facilities were available to the group at the time of signing the accounts for 2013".
The renewal occurred on March 7, providing access to a new overdraft, term loan and revolving loan facility for an extended period to July 2017.
Augean shares were Tuesday quoted at 46.90 pence, up 0.9%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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