91̽»¨

RSM’s debt advisory team helped facilitate a significant fundraise that allowed for the transition to a borrowing base asset-based lending (ABL) structure for Thomas Plant Hire.

The client

Thomas Plant Hire Limited is a leading provider of contracted groundwork and plant hire services. Over the past 20 years, the group has predominantly grown organically through continuous investment in improving and diversifying its fleet. It has positioned itself well, with greater exposure to the resilient ends of the construction market.

RSM’s solution

RSM  helped Thomas Plant Hire Limited secure a total funding package of £100m from HSBC, NatWest and Barclays. This was to provide a facility to better meet the ongoing needs of the business as well as additional support for its future growth strategy. The new funding was provided through a borrowing base ABL structure, which allows for more flexibility than traditional HP agreements while better aligning funding and debt amortisation with ongoing asset values. 

The outcome for the client is an efficient and cash generative debt structure. This will allow the business to accelerate investment in its plant and machinery asset base and move to the next stage of its growth plan. Given the overall size of the debt requirement, it was necessary to negotiate a ‘club’ transaction with three high-street banks, which added complexity to the transaction. RSM’s debt advisory team secured the deal for Thomas Plant Hire. 

Transaction team: Ash Suter and Jack Williams

Testimonial

‘It was a pleasure working with 91̽»¨and all the named banks, and we look forward to building on the relationships established in the process.’

Wyn Thomas, CEO

Thomas Plant Hire