The funding solution provided comprises a receivables facility as well as a revolving plant and machinery facility which is secured against elements of Van Elle’s market-leading fleet of equipment. The solution was supported by input from our in-house fixed asset specialists at ABN AMRO Lease and this structure will provide additional strength and flexibility to the business - allowing it to realise its growth ambitions.
This opportunity was introduced to ABN AMRO Commercial Finance by the Debt Advisory team from BDO’s London offices with Shoosmiths LLP acting on behalf of ABN AMRO Commercial Finance.
Graeme Campbell, Chief Financial Officer, Van Elle Holdings plc, said, “ABN AMRO Commercial Finance have been a pleasure to work with. The process was well communicated and managed within a tight deadline, from having an initial conversation to deal completion. The flexibility of the funding solution will support our plans for growth, particularly as the economy recovers, and allows greater flexibility for capital expenditure requirements.”
Katharine Weeden, Business Development Director at ABN AMRO Commercial Finance, said, “ The team at ABN AMRO Commercial Finance are delighted to have worked with the management at Van Elle to provide a flexible debt package to maximise the liquidity available to the company. Whilst the business has already taken steps to protect itself against the effects of Covid-19, this solution will provide access to additional funding, as and when required, in order to support anticipated growth within the construction sector.”
Read more from Van Elle Holdings plc below:
Refinancing of Existing Debt Facilities
Van Elle Holdings plc (AIM: VANL), the UK's largest ground engineering contractor, has entered into an agreement with ABN AMRO Commercial Finance, for up to £11m of asset-based lending facilities ('the Facilities').
The Facilities are provided on a revolving basis over 4 years and are secured by an all assets debenture including first priority charges over the Group's receivables and certain tangible fixed assets. There are no financial covenants associated with the Facilities.
The new Facilities, which shall be undrawn on completion, provide additional balance sheet strength to enable the Group to support growth and provides greater flexibility for future capital expenditure requirements.
The Group's cash position at the end of September was c.£11.5m and the remaining debt under hire purchase agreements is £5.7m. With net funds (excluding IFRS 16 property lease liabilities) of c.£5.8m, the Group is well-positioned to face any short-term market challenges.
As part of the refinancing, the existing overdraft facility with Lloyds Banking Group of £2.5m has been terminated.