56LT Sg Issuer 23

RNS Number:1867F
Ashtead Group PLC
12 November 2004


                               ASHTEAD GROUP PLC

               CLOSING OF US$675 MILLION SENIOR DEBT REFINANCING

                   * Strong investor demand during syndication
         * Lower interest charges than under the facilities now replaced
                  * Greater liquidity from asset-based facility
                                        


Ashtead Group plc, the international equipment rental group serving the
construction, industrial and homeowner markets has successfully closed its new
US$675 million (#365 million) senior debt facility, announced on October 11,
2004.


Commenting on the new facility, Ashtead's finance director, Ian Robson, said,


"Having closed our new asset-based facility, we will now benefit from lower
borrowing costs and greater liquidity enabling us to invest further in our
business at a time when US non-residential construction is exhibiting renewed
growth."


The syndication of the new first priority asset based facility (the "Facility"),
jointly arranged by Banc of America Securities LLC and Deutsche Bank Securities
Inc and fully underwritten equally by Bank of America N.A., Deutsche Bank Trust
Company Americas and GE Commercial Finance, was significantly oversubscribed. 
At closing $490 million (#265 million) was drawn under the new facility to repay 
the amounts outstanding under the Group's existing senior debt facility and its 
accounts receivable securitisation with the balance of the Facility available to 
fund future capital investment and working capital requirements.


The new Facility consists of a US$400 million revolving credit facility and a
US$275 million term loan. Initial pricing is LIBOR plus 250 basis points for the
term loan and LIBOR plus 275 basis points for the revolver. The initial pricing
will be adjusted based on the ratio of funded debt to EBITDA according to a grid
which varies between LIBOR plus 225 basis points and LIBOR plus 300 basis points
allowing the Group to benefit from its anticipated future de-leveraging. Strong
investor demand during syndication resulted in a reduction of the initial
pricing of the term loan and a narrowing of the grid spread.


The average initial interest rate is LIBOR plus 260 basis points compared with
an average of LIBOR plus 390 basis points under the facilities now replaced. In
addition the Group will amortise the upfront underwriting, legal and
professional costs of the new facility over its five-year life, which will lead
to an additional charge included within interest of approximately 75 basis
points.


The Facility carries minimal amortisation of 1% per annum ($2.75 million) on the
term loan and is committed for five years until November 2009 subject only to
the Company's #134 million convertible subordinated loan note being refinanced
prior to November 2007.


The Group's available liquidity under the facility at closing was $114 million.
As the facility is asset-based, the maximum amount available to be borrowed
(including drawings in the form of standby letters of credit) at any time
depends on asset values (receivables, rental equipment, inventory and real
estate) which are subject to periodic independent appraisal. The maximum amount
which could be drawn at closing under the borrowing base was $632 million but
this amount can rise up to the $675 million facility limit as additional assets
are purchased during the life of the facility.


JP Morgan acted as financial advisor to the Company in connection with the new
facility.



Contacts:

Cob Stenham       Non-executive chairman                  020 7299 5562
George Burnett    Chief executive                  )
Ian Robson        Finance director                 )      01372 362300

Brian Hudspith    The Maitland Consultancy                020 7379 5151
                                                      




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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