Biffa secures new five-year £350m revolving credit facility

Waste management group Biffa has announced a new unsecured £350m revolving credit facility with a consortium of banks that will reduce the cost of its debt.

The facility, which replaces the company's existing facilities due to expire in July 2021, will expire in March 2024 and has an option to extend for up to a further two years.

Biffa said the new financing will provide the group with a lower average cost of debt, an increased maturity profile and improved covenants. It will result in margin savings of around £2.5m a year.

Chief financial officer Richard Pike said: "We are delighted to have refinanced our core bank facility and further diversified our lending group. Together with our finance lease facilities, we now have just under £500m of committed facilities.

"Leverage continues to remain broadly constant at around 2.0x net debt to EBITDA, despite ongoing investment for future growth and after taking into account the recent acquisition of SWR Newstar."

At 1050 GMT, the shares were up 3.4% to 229p.