Industrial fastenings firm Trifast has secured a £120m financing deal that will help it to create a national distribution centre in the Midlands.
Trifast has secured the new financing arrangements, in a deal led by HSBC UK, to enable it to grow organically and through acquisition and to 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, with the new three-year £70m facility split between HSBC UK, NatWest and Citi.
The funding will be used for projects including a "substantial investment" in a new national distribution hub, near its Tipton innovation centre, for its UK subsidiary TR Fastenings. Trifast said the 75,000 sq ft centre "is expected to increase operational efficiencies, customer collaboration and facilitate round-the-clock service".
The funding also gives TR a working capital increase to 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 Sussex-based Trifast, said: “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.”
Cian McCarrick, director, UK financing solutions at NatWest, said: “We are delighted to have supported Trifast in this transaction. The new debt facilities will enable Trifast to accelerate investment in the business, providing a boost to the communities in which it operates and enabling the business to better support its customers.”
Esi Eshun, director of Business Group at UKEF, 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”
