Hamburg Commercial Bank AG (HCOB) acted as Lead Arranger in the refinancing of Premier Modular Group. As part of this transaction, a refinancing package with a total volume of GBP 360 million was provided. The financing, realised jointly with a European banking consortium, is intended to promote the next investment phases in the portfolio of modular buildings as well as Premier Modular's expansion.
The refinancing package comprises various components: a Term Loan, a Capex Facility, and a Revolving Credit Facility. This structure enables Premier Modular to mobilise the necessary funds for further growth and the development of its infrastructure.
Premier Modular is establishing itself as a leading provider of modular building solutions in the United Kingdom. The company is backed by infrastructure investors Cabot Square Capital and MML Capital Partners. Its business activities include the development and production of modular buildings, which are primarily leased. These products are used in sectors such as education, healthcare, and infrastructure.
Market Positioning and Growth Prospects
A significant portion of Premier Modular's business success is based on long-term, government-funded infrastructure programmes in the UK. These include initiatives for rebuilding schools and constructing new hospitals. The British market for modular buildings is experiencing increasing demand for flexible and sustainable solutions, which underpins Premier Modular's strategic positioning.
Cesar Bravo, Project Finance Director at HCOB, expressed his pleasure regarding the acquisition of a new client and the support for the company's growth through the financing. Hans Lötzer, Head of Project Finance at HCOB, emphasised the bank's expertise as a financing partner in this market segment. David Harris, Chief Executive Officer of Premier Modular, highlighted that the refinancing represents a significant milestone and reflects the confidence of the banking partners in the company. He added that the company has built a market-leading platform with a modern portfolio of modular buildings and an established customer base, and now has the means to continue investing in this platform. Harris saw the company as well-positioned to meet the high demand for flexible, high-quality modular spaces in the UK.
- —Total refinancing volume: GBP 360 million
- —Parties involved: Hamburg Commercial Bank AG (HCOB), European banking consortium, Premier Modular Group
- —Financing structure: Term Loan, Capex Facility, Revolving Credit Facility
- —Purpose: Support for investments and expansion in modular buildings
