Hewden Stuart extend £100million ABL line with RBS

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Hewden Stuart extend £100million ABL line with RBS

Hewden Stuart Limited, one of the UK’s largest players in the plant hire sector has extended its £100million Asset Based Lending (ABL) funding package with RBS Invoice Finance until 2015.

The ABL facility, secured against the firm’s account receivables, plant and machinery and property assets was originally introduced in August 2010 to support the company’s working capital requirements.

Hewden Stuart Limited was acquired by an affiliate of Sun European Partners, LLP in 2010. They have supported and overseen the management team’s implementation of a robust strategy and business plan, which is proving highly successful.

The suitability of the ABL facility and strength of relationship built between the sponsor, management and RBS Invoice Finance led to Sun European Partners, LLP approaching RBS Invoice Finance to request an extension of the facility term, 19 months prior to expiry of the original agreement period. The stability and certainty this extension provides will enable the business to continue to plan for the longer term, including investing in its fleet where required.

Hewden Stuart was established in 1968 after the merger of Hewden (Plant Hire) and RG Stuart Plant. Today Hewden is the UK’s leading multi specialist construction, infrastructure, environment and industrial plant and equipment rental provider, employing 1100 rental professionals.

Sun European Partners, LLP is the European adviser to Sun Capital Partners, Inc., a leading US based private investment firm focused on leveraged buyouts, equity, debt, and other investments in market leading companies that can benefit from its in house operating professionals and experience.

"The ABL structure has worked well for Hewden Stuart which is evidenced by the outcome of our recent negotiations. Hewden Stuart is a strong brand and market leader, currently operating in a difficult macro economic environment. The fact that the company has delivered upon its objectives and business plan is testament to the calibre of its management and sponsor. The ABL facility will continue to underpin the company’s financing arrangements and I am naturally delighted that Hewden Stewart has chosen RBS Invoice Finance to partner it in this regard."

Alan Boileu, ABL Relationship Manager at RBS Invoice Finance

"ABL is a great way to help UK businesses prosper and unlock working capital. The key strength of using ABL is that it can offer companies like Hewden Stuart the speed and flexibility to immediately provide access to funds by tapping into the value of their company assets without having to slow business growth or raise equity."

Chris Hawes, Director of Corporate at RBS Invoice Finance

"We were delighted to work with RBS on this transaction. The extension of the ABL facility provides Hewden with the liquidity to enable it to continue investing in the business and achieve its long term objectives."

David Culpan, Vice President at Sun European Partners, LLP

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