Severfield secures £50m revolving credit facility

Severfield, the Thirsk, North Yorkshire-based steel group, said on Monday it completed a refinancing of its revolving credit facility (RCF) with its current banking syndicate.

Severfield’s projects include a new stadium for Everton F.C. and the new Google Headquarters at King’s Cross, London.

The new £50m RCF provides additional liquidity above the £25m RCF which it replaces and extends the term of the facility which now expires in December 2026,” said Severfield.

“The RCF remains subject to three financial covenants, interest cover, net debt to EBITDA and debt service (cash flow) cover.

The new facility provides the group with enhanced liquidity and long-term financing to help support its growth strategy.”

On November 23, Severfield said its first-half revenue rose 5% to £195.9 million and underlying profit before tax was up 23% to £10.3 million in the six months ended September 30, 2021.