Begbies renegotiates its credit facilities

has agreed enlarged credit facilities totaling £30m, and a
new £5m overdraft facility.

They replace a £25m revolving credit facility plus £5m overdraft.

The unsecured facilities are with HSBC (£15m revolving facility over 4.25
years with an overdraft), plus Yorkshire Bank (£15m revolving facility). The
group had used £16m of its existing bank facilities as of 31 October 2009.

Interest on the two facilities will be charged at 2% over LIBOR, and 1.95%
over the bank base rate.

The deals cost £400,000 to arrange. Begbies said that it believed the deals
were highly competitive.

“The new facilities provide the group with a more flexible and longer term
financing structure, reflecting the increasing scale and sophistication of our
business. The additional funds will enable us to consider both organic
investment and acquisition opportunities, principally in the insolvency and
restructuring sector,” said Ric Traynor, Begbies Traynor executive chairman.

Further reading:

Traynor tax division declining

companies “in severe financial distress”-Begbies Traynor

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