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GRS has completed a major refinancing deal with Wells Fargo Capital Finance, advised by Interpath Advisory. The new package provides GRS with the financial firepower to continue its growth trajectory to increase revenues at 20% per annum.
GRS’ existing loans were extended to June 2023 during the pandemic, with a further £15 million of Coronavirus Large Business Interruption Loan Scheme (CLBILS) provided by a syndicate of UK high street banks.
The new simplified financing arrangement, provided by Wells Fargo Capital Finance, includes a receivable facility of up to £60 million which doubles the business' financing capacity. That gives GRS greater operational and financial capability as it pursues its ambitious growth strategy and further consolidates its position as a market leader in heavyside construction materials and associated logistics.
Employing 800 people nationwide, plus a broad network of independent contractors, GRS handles 20 million tonnes of materials annually. The company is involved with some of the UK’s biggest infrastructure projects – including being the largest supplier of aggregates to HS2 – and also supplies leading builders merchants.
Martin Reid, GRS Group Chief Finance Officer, said: “We would like to thank Interpath and Wells Fargo for their support in completing this refinancing package. At a time of continued economic uncertainty, the arrangements announced today demonstrate the market’s confidence in GRS and our future ambitions.
"The strategic investments we have made in recent years are really starting to pay dividends as well as placing GRS among the most sustainable businesses in our sector – for example greater use of rail and water freight, reprocessing of mining spoil as secondary aggregates, the recovery and recycling of construction waste, and the switch to green hydrotreated vegetable oil (HVO) fuel in the South West. We have a solid platform to deliver significant growth in the years ahead and now we have the financial backing to do this."
John Miesner, Debt Advisory Managing Director at Interpath Advisory, commented: “We’re delighted to have advised GRS on its new financing package, which unlocks significant additional debt capacity at market leading rates. We have supported the GRS team from the assessment of its financing options, through to the delivery of a structure that simplifies and enhances its debt facilities. The facility will provide the capacity for the GRS Board to deliver on that strategy to be number one in its core markets.”
Julian Osborne, Director of Wells Fargo Capital Finance, said: “It’s exciting to provide financing to GRS as they continue their growth journey. The asset-based credit facility put in place for this transaction demonstrates the breadth of capabilities and flexible financial solutions that we can offer to our clients. It has been a pleasure to work with their management team and we look forward to a long and productive business relationship.”