Stobart Group has arranged a £100million, ten year loan to repay existing bank debt and to provide additional investment funds.
The loan will be used in part to finance the development of Southend Airport, which Stobart acquired in 2008 and whose application for a runway extension received ministerial consent in March of this year.
Funds will also be available to invest in further capital projects.
The money is being provided by the UK Companies Financing Fund and the deal was arranged by M&G Investments.
Stobart’s chief financial officer Ben Whawell said: “We are delighted to partner with M&G and see them as providing the core part of our term borrowing needs and as a reliable partner for the future development of the Group. We are particularly pleased that we have access to long term debt with maturities well beyond what is usually available in the bank market. In addition, the facility gives us the flexibility to fulfil the strategic development of our business and assets.”
