Refinancing deal with Barclays and Lloyds set to last four years
Oval has signed a £43m financing deal, the Yorkshire Post reports.
The deal includes a £20m term loan and £3m overdraft facility with Barclays, as well as £30m of financing from Lloyds. The deal has been structured to last for four years.
Oval Group finance director Ian Story said: “Barclays and Lloyds have supported Oval for many years and we look forward to their continuing involvement for many more to come. We believe this refinancing is an endorsement of our strategy.”
Barclays Corporate Banking relationship director Ben Andrews said: “Oval has proven resilient through the cycle and Barclays’ support has been based on our belief in the quality of the management team and the close relationship we have enjoyed over the years.”
£5m war chest
Oval chief executive Peter Blanc told Insurance Times last year that he expected to have a war chest of about £5m for a few small acquisitions. However, at the time he appeared confident in securing a much larger sum from the broker’s four banks, with which, he said, he was in negotiations.
It is not clear whether this refinancing deal formed part of these negotiations, nor whether the new funds will be used for acquisitions.
Earlier this year Blanc, said the broker intended to target brokers with earnings before interest, taxes, depreciation and amortisation (EBITDA) of £250,000 or more for acquisition. Ideally though, he said, Oval would look to acquire 10 brokers with an EBITDA of £1m each.
No comments yet