Consulting
Rsmuk
Full Credential Description
Thomas Plant Hire Limited, a prominent provider of contracted groundwork and plant hire , faced the challenge of transitioning to a more flexible and efficient funding structure to support its ongoing business needs and future growth strategy. Over the past two decades, the company had primarily grown through organic means, continuously investing in the improvement and diversification of its fleet. However, to further enhance its position in the resilient construction market, a significant fundraise was necessary. RSMs debt advisory team facilitated a total funding package of £100 million from HSBC, NatWest, and Barclays. This funding was structured as a borrowing base asset-based lending (ABL) arrangement, which provided greater flexibility compared to traditional hire purchase agreements. The ABL structure allowed for better alignment of funding and debt amortization with the ongoing asset values of the company, addressing the specific financial needs of Thomas Plant Hire. The outcome of this tailored solution was the establishment of an efficient and cash-generative debt structure, enabling Thomas Plant Hire to accelerate its investment in plant and machinery. This strategic move positions the company to advance to the next stage of its growth plan. The complexity of the transaction was heightened by the need to negotiate a club deal involving three high-street banks, a challenge that RSM successfully managed, securing the deal for Thomas Plant Hire.