GVA agrees debt-swap deal with Lloyds to fund growth

UK independent commercial property advisor GVA has announced a capital restructuring of its balance sheet to prepare the business for its planned strategic growth programme.

The restructuring, which involves a conversion of all outstanding loan notes that were set at the date of incorporation in 2007 into non-yielding preference shares, will result in an improved net debt position of circa £15 mln (EUR 20 mln) for GVA. Under the terms of the deal, Lloyds Development Capital will swap loan notes for a 7.5% increase in shareholding over the next three years.

As part of the same process, shareholding amongst directors and departmental heads will be further diversified, allowing wider ownership of equity in the business.

'This release of capital creates a significant war chest for GVA to invest in areas it believes will lead to further growth for the company,' the company said in a statement. GVA has identified three areas in which it will be seeking growth over the coming 12 months and beyond - new business acquisitions; strengthening its international platform; and boosting existing benefits to employees.

'We have ambitious growth plans, and this release of equity will invigorate our business just at a time that many are finding the market tough going,' said CEO Bob Bould. 'We have a fantastic opportunity to invest in our teams and people as well as explore new business opportunities through mergers and acquisitions. We must invest in our international platform to take advantage of the new opportunities that we see happening just as the market starts to recover.'