Member Info for Jakeythelord

Overall, this is good news for shareholders and the company.

Here's why:

Positive points

✅ Debt maturity extended

The old facilities were due to expire in December 2027.

The new revolving credit facility now runs until June 2029, with potential extensions to 2030 and 2031.

This reduces refinancing risk.

✅ Lower borrowing costs

The announcement specifically mentions a reduced margin, meaning Severfield will pay less interest over the base rate.

Banks typically only offer better terms when they view a company as financially stronger.

✅ More flexibility

The company retains its £60m revolving credit facility.

It also gains access to an additional £30m accordion facility if needed for growth, acquisitions, or working capital.

✅ Unsecured lending

The facilities remain unsecured, meaning the banks are not requiring specific company assets as collateral.

This generally indicates lender confidence.

✅ Improved covenant terms

Financial covenants are the rules banks impose on borrowers.

More favourable covenants give management greater flexibility and lower the risk of breaching banking agreements during a downturn.

Things to keep in mind

Looking at what was said today. I definitely think it could have been worse. The CEO isnt the right person to lead the company and needs someone who knows what there doing but it's still very cheap for it's fundamentals so going to be buying more personally should it go further down