Wakefield-based Carclo, which makes tolerance injection molded plastic parts and aerospace components, has reached a revised and extended financing agreement with its main secured creditors – HSBC and the pension plan.
This arrangement gives access to current banking facilities as well as visibility on repayment schedules until June 2025.
New facilities were concluded with HSBC, the Group’s lending bank, comprising a £34.5m term loan and a £3.5m revolving credit facility.
In parallel, Carclo has entered into an agreement with the trustees of the pension scheme regarding both the actuarial deficit and the resulting deficit repair contributions to be paid over the next three years in addition to the currently agreed gross contributions of 2, £8 million (2021), £3.9 million (2022) and £3.8 million (2023).
Future deficit repair contributions have been agreed at the base position of £3.5m per annum plus 25% of any excess above Adjusted EBITDA above £18m (2024) , extending to 26% of any surplus above Adjusted EBITDA above £18 million (2025).
Nick Sanders, Executive Chairman of the company, said: “The completion of this refinancing is another positive step in the development of Carclo plc and enables the Group to focus on executing our growth strategy, aimed at capturing the significant long-term opportunities available. to the Group.