Manchester industrial chain and power transmission firm Renold plc said it has reached agreement for the extension of its core banking facilities that were due to mature in April 2024.

“The new, £85.0m multi-currency revolving credit facility, will be increased from the previous level of £61.5m,” said Renold.

“Additionally there is a £20.0m accordion option which will allow the company to access additional funding in support of its acquisition programme as part of the Group’s STEP2 strategy.

“The new facilities will be provided by our existing banks HSBC, Allied Irish Bank (GB) and Citibank with the addition of Santander and are initially for a three year term, to May 2026, but contain an option to extend the term for a further two years.  

“The principal facility term, the Net Debt / EBITDA covenant, will be extended from the previous level of 2.5 times EBITDA to 3.0 times EBITDA, with other key terms remaining unchanged.”

Renold CEO Robert Purcell said: “We are delighted to announce we have reached agreement to extend our banking facilities, which will provide a stable financing platform to support the continued strategic development of the group over the next few years.

“As part of the facility extension, we welcome a new lending partner to the syndicate which complements Renold’s extensive geographic reach and can help support our operations across the world.”