Zenith strengthens balance sheet with recapitalisation deal

Zenith has announced a major recapitalisation transaction designed to reinforce its financial position and support long-term growth, as the fleet management group extends debt maturities and secures fresh equity backing.

The UK’s largest independent truck-to-car leasing and fleet management provider is undertaking the transaction in partnership with its existing lenders and noteholders, alongside a £100 million equity injection from majority shareholder Bridgepoint.

The recapitalisation will be used in part to support the re-collateralisation of Zenith’s EFP1 securitisation facility, helping to offset the impact of lower vehicle residual values. It will also enable a two-and-a-half-year extension of the facility’s revolving period to February 2029.

At the same time, Zenith has agreed to extend the maturities of its Revolving Credit Facility and Senior Secured Notes by four years, pushing them out to April 2031 and June 2031 respectively.

The company said the move provides a more stable and sustainable funding platform as it continues to execute its long-term strategy, supported by strong trading performance and resilient customer demand.

“Zenith has an ambitious strategy for growth centred on being the UK’s most customer-focussed fleet partner,” he said.

“To support this, we are pleased to have agreed a comprehensive recapitalisation transaction with our key financial stakeholders, which materially strengthens our balance sheet and funding.”

He added that the deal reflects the strength of Zenith’s relationships with its investors and provides long-term liquidity. “This is a key enabler for our strategy, providing significant long-term liquidity through extending the maturities on our senior debt into the next decade, and the injection of new capital from our long-standing and supportive shareholder, Bridgepoint.”

Zenith said it continues to see strong margins on new lease contracts, alongside a recovery in residual value profits as newer, more profitable vehicle cohorts replace legacy agreements. The business is also benefiting from high customer retention and a solid pipeline of new business wins.

Jones said the recapitalisation will enhance the group’s financial flexibility as it looks to build on this momentum. “We continue to benefit from resilient customer demand with ongoing high retention rates and new business wins that reflect the quality of our customer service and offering,” he said.

The company has secured the support of its financial stakeholders to complete the transaction on a consensual basis, with closing expected by the end of April 2026.