Global industrial fastening business seals £120m HSBC UK, NatWest & Citi deal

In a deal led by HSBC UK, international industrial fastenings business Trifast plc has prepared for the future by agreeing new financing arrangements which will enable it to grow through organic and acquisition investments and support its export growth ambitions.

The new funding, backed by UK Export Finance (UKEF), takes the form of a £50m Export Development Guarantee Facility which enables a loan provided by HSBC UK, NatWest and Citi.

The banking arrangement also involved a renegotiation of Trifast’s existing revolving credit facility. The new three-year £70m facility is split between HSBC UK, NatWest and Citi.

Trifast will put the full finance package towards several initiatives. These include a substantial investment in a new National Distribution Centre near Birmingham for its UK subsidiary, TR Fastenings Ltd. The 75,000 sq ft centre is expected to increase operational efficiencies, customer collaboration and facilitate round-the-clock service.

In addition, the funding offers TR a working capital increase that will fund organic growth and new product ranges, as well as facilitating investment into group functions and software development.

Darren Hayes-Powell, chief financial officer at Trifast, commented: “This deal marks an important milestone for the Group. This combined finance facility gives us the flexibility to invest and grow the business in our key sectors on a global basis.

“It also supports our export ambitions and our commitment in research and technical innovation and provides our key Tier 1 and Tier 2 customers access to cutting-edge technologies that will drive to improve efficiency and sustainability within our businesses.”

Michael Farr, senior director, Corporate Banking Origination, HSBC UK, added: “Trifast supplies customers in many sectors including automotive, energy, tech and infrastructure, both within the UK and internationally.

“As a global bank, our reach will help Trifast with its growing export ambitions as well as supporting the business in driving technical innovation across geographies and sectors.”

Esi Eshun, director of business group at UK Export Finance, said: “This is an important deal which sees UK Export Finance help Trifast to realise its international growth ambitions. Trifast plays an important role in supporting major global assembly industries, and I am proud to see our backing enable the continued growth of this innovative exporting business”

By Matthew Neville – Senior Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →