Balfour confirms bank refi

Infrastructure group Balfour Beatty has announced the successful refinancing of its bank facility after issuing its latest trading update.

Balfour has agreed a new £400m syndicated revolving credit facility, refinancing the existing facilities that had been due to expire in 2016. 

The size of the credit facility has been reduced, consistent with the group’s ongoing capital requirements and the underlying strength of the balance sheet. The new facility extends through to 2018, with the option for two additional one-year extensions through to 2020.

The news comes as part of a trading update for the period ending 8 December 2015. The firm expects to be net cash positive at the year end and said the Build to Last transformation programme continues to gain traction, as new standardised processes and controls are rolled out across the businesses.

The group said it has had success in winning new contracts on improved terms and the order book is expected to remain broadly stable in the second half.

However, it "remains focused" on managing the historic problem projects across the business through to completion.

Leo Quinn, chief executive, said: "We are putting in place the systems and processes that should transform Balfour Beatty into a stronger business, as demonstrated by our successful refinancing.”

Last week, Balfour Beatty sold its share in the Greater Gabbard offshore transmission owner (OFTO) contract to Equitix. A Balfour Beatty Equitix Consortium was appointed the preferred bidder for the Humber Gateway wind farm's offshore transmission owner (OFTO) contract in September.