Hector Rail, a private freight train owner and operator in Scandinavia, with a growing platform in Germany, has raised a SEK519 million financing package from a group of leading European commercial lenders to refinance its existing debt.
The financing package comprises a term loan alongside a capex facility to support the growth of the business.
The refinancing will allow Hector Rail to continue to strengthen its position as Sweden’s leading independent green electric rail freight provider, enhance the company’s growing position in Germany and support the company in expanding its existing fleet.
Hector Rail was acquired by funds managed by Ancala Partners LLP, the independent mid-market infrastructure investment manager, in August 2020. Following the acquisition of Hector Rail, Ancala explored options for potential debt facilities and an appropriate financing strategy to support Hector Rail’s growth plans. Hector Rail’s robust performance, despite the difficult market conditions caused by Covid-19, made for an attractive proposition for lenders.
The lenders in the financing package are Landesbank Hessen-Thüringen (Helaba) and Siemens Bank.
Spence Clunie, Managing Partner of Ancala Partners, says: “Hector Rail plays a key role in both the Swedish and German economies, delivering an essential green electric rail freight service through the Covid-19 pandemic. This financing package will support Hector Rail through its next stage of growth. This refinancing demonstrates Ancala’s continued ability and expertise in successfully executing debt financings for our portfolio companies.”
Kurt Håkansson, Chairman of Hector Rail, says: “Hector Rail has delivered robust performance through the Covid-19 pandemic, continuing to deliver reliable green electric rail freight services for its customers across a range of industries. The new financing package will support our ambitions to further expand our fleet, strengthen our position as the leading independent rail freight provider in Sweden and grow our platform in Germany.”
Source: Private Equity Wire
