Energy firm secures new fighting fund for further expansion
Kirkham-based energy consultancy Inspired Energy has secured a refinancing deal designed to fuel its continued growth drive.
The group earlier this year bought an initial 40 per cent of Ignite Energy for £5m, with an option to acquire the balancing interest of 60 per cent.
Last year it took over System Link 200 Ltd and Energy Cost Management Ltd, following several years of other sector acquisitions.
It said it will be using the new fund to refinance the existing indebtedness of the group and provide additional headroom for the group’s growth ambitions.
The finance arrangement runs until October 2023 and Inspired has an option to extend the term for a further year to October 2024. It consists of a £60m revolving credit facility, with enhanced pricing terms from the previous deal, supplemented by a £25m “accordion option” enabling a total commitment of up to £85m.
Paul Connor, chief financial officer of Inspired, said: “The board is delighted to partner with Santander and Bank of Ireland on this new £60m revolving credit facility, which provides Inspired with the capital base to deliver on our stated growth strategy.
“The relationship with Santander has been instrumental in the growth of Inspired since 2013, and the board sincerely appreciates the continued support to the group by Santander as we enter the next phase of growth.
“The board welcomes Bank of Ireland as a new partner to the group providing further validation and support to the group’s strategy as Inspired continues to grow its market leading position.”
Charlotte Lees of Santander said: “Inspired’s performance since we first worked with them in 2013 has been outstanding, with the team successfully concluding and integrating 15 acquisitions, clearly establishing themselves as the lead consolidator in this sector.
"Given Inspired’s focus on ongoing growth, we have worked with Bank of Ireland on this transaction in order to significantly increase facility headroom, providing firepower for future M&A activity.”