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 Ƶ, to enable it to grow organically and through acquisition and to support its export growth ambitions.
The new funding, backed by Ƶ Export Finance (ƵEF), takes the form of a £50m export development guarantee facility which enables a loan provided by HSBC Ƶ, 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 Ƶ, 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 Ƶ 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 Ƶ, added: “Trifast supplies customers in many sectors including automotive, energy, tech and infrastructure, both within the Ƶ 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, Ƶ 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 ƵEF, said: “This is an important deal which sees Ƶ 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”
