Financial Advisory
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 diversification and improvement of its fleet. However, to sustain this growth and enhance its position in the resilient construction market, a significant financial restructuring was necessary. RSMs debt advisory team provided a tailored solution by facilitating a £100 million funding package from HSBC, NatWest, and Barclays. This funding was structured as a borrowing base asset-based lending (ABL) arrangement, which offers greater flexibility compared to traditional hire purchase agreements. This new structure aligns funding and debt amortization more closely with the ongoing asset values, allowing Thomas Plant Hire to manage its cash flow more effectively. The outcome of this strategic financial maneuver was the establishment of an efficient and cash-generative debt structure. This new arrangement empowers Thomas Plant Hire to accelerate its investment in plant and machinery, thereby propelling the company into the next phase of its growth plan. The complexity of negotiating a club transaction with three major banks was successfully managed by RSMs debt advisory team, ensuring that the client secured the necessary funding to meet its ambitious objectives.