Westcon, part of the Datatec Group, has increased in aggregate its banking facilities by $156 million, to $360 million, for its North American and European subsidiaries.
The company said these facilities are at a lower interest rate and will provide additional working capital to support Westcon's organic and acquisition growth programme, without recourse to Datatec's own facilities.
Westcon has recently acquired North American-based ReView Video, as well as two European-based distributors - Crane Telecommunications and NOXS - adding more than 400 employees and about $350 million in annual revenue.
The company recently entered into a joint venture with Netex, a speciality distributor based in Turkey, adding to the emerging markets recently opened in New Zealand, Malaysia and Dubai.
In North America, the new banking facilities consist of $280 million, up from $190 million, with the ability to add $40 million if necessary. In Europe, Westcon's subsidiary increased its existing facilities by $66 million.
The group's finance director, David Pfaff, says this is an important development for Westcon and the Datatec Group, as it brings down the cost of capital for Westcon and provides the business with considerable headroom to continue its rapid organic and acquisitive growth, without calling on Datatec's resources or shareholders.
"We think this is a significant refinancing achievement; not only have we prudently locked in more favourable terms in an environment of increasing credit spreads, but we have also increased our capacity to borrow more. It attests to the fundamental strength of our underlying businesses," he adds.
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