Moto Hospitality, the motorway service area operator, has completed a refinancing deal.

The company this week completed the successful placing of £445m of Senior Credit Facilities with a group of eight banks and issued £175m of second lien notes,

Moto will use the net proceeds of the new facilities along with cash on hand to repay its existing bank facilities and redeem the existing £176m second lien notes due in 2017.

Robert Prynn, Moto’s chief financial officer, said: “Moto were delighted to have successfully completed the refinancing and the new debt package will significantly reduce Moto’s annual interest cost, allowing the company to invest further in its estate. Moto plans to continue to roll out further Marks & Spencer and Gregg’s units over the next five years as well as delivering other innovative new food offers for its customers. This gives the company a very firm financial foundation for the future.”

Moto is owned by a consortium of investors comprising: Moto Trades Association of Australia Superannuation Fund Proprietary Ltd, Australian Super Proprietary Ltd, EPIC (Bermuda) Holdings Ltd, Macquarie Spectrum Holdings No. 1 Ltd, Macquarie Bank Ltd, Statewide Superannuation Proprietary Ltd and Macquarie Prism Proprietary.

Evercore Partners International LLP acted as lead financial adviser on the transaction.