Trifast seals £120m financing deal

A deal led by HSBC UK will see Trifast prepared for the future with funding to enable it to grow through organic and acquisition investments and support its export growth ambitions.

The new funding, backed by UK Export Finance, takes the form of a £50 million 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. The new three-year £70m facility is split between HSBC UK, NatWest and Citi.

Trifast will put the full finance package towards several initiatives. These include a substantial investment in a new national distribution centre at Walsall for UK subsidiary TR Fastenings.

It will be near junction 10 pf the M6 at Reedswood Way.

The 75,000 sq ft centre is expected to increase operational efficiencies, customer collaboration and facilitate round-the-clock service. In addition, the funding offers TR a working capital increase that will fund organic growth and new product ranges, as well as facilitating investment into group functions and software development.

Trifast, which is celebrating its 50th anniversary, is closing its TR Fastenings manufacturing site in Uckfield and centralising distribution. The new national centre is due to be completed by the end of March next year.

Darren Hayes-Powell, chief financial officer at Trifast, explained: “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.”

Esi Eshun, director of business group at UK Export Finance, 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”

Cian McCarrick, director, uk financing solutions, NatWest, commented: “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.”