Yorkshire Bank participates in £300m finance package for Halfords

Halfords, one of the UK’s largest retailers, has secured a £300 million finance package backed by Yorkshire Bank Corporate & Structured Finance and four other banks.

The funds will replace the existing credit facilities and provide funding for both the Group's working capital requirements and the development of the business in line with its stated strategy. Yorkshire Bank has provided £50m as part of a ‘banking club’ that also includes RBS, Handelsbanken, Barclays and Bank of Ireland.

Halfords, which is based in Redditch, is the UK’s leading retailer of automotive, leisure and cycling products. Following the acquisition of Nationwide Autocentres in February 2010, it is also the UK’s leading independent car servicing and repair operator.

A FTSE 250 business with a market capitalisation of nearly £900 million, Halfords operates from 462 stores in the UK and ROI and 227 Autocentre sites. It employs almost 11,000 people and turnover for the year to 2 April 2010 was £832 million.

Peter Corcoran, corporate area director with Yorkshire Bank Corporate & Structured Finance in Birmingham, headed a team which also included Steve Drury and Jamie Stuart. Peter Corcoran said: “Halfords is a market-leading business with a strong and consistent financial performance. We are delighted to have contributed to the finance package.”