Microlease refinanced

The mid-market private equity arm of Lloyds Banking Group, LDC, has completed a £19.5m refinancing of Microlease, the UK test equipment rental business it acquired three years ago.

Lombard Business Finance, which backed the original MBO, has increased its debt facility from £7.8m to £12.5m, with Royal Bank of Scotland, Lombard’s parent company, has provided £7m.

LDC injected an additional £8.3m in Microlease in August following its £11.8m investment in the 2006 acquisition, where it took a 60% in a deal valued at a total of £30m.

The money will be used to further LDC’s buy-and-build strategy for the company, which has already snapped up Belgium-headquartered Telogy International, the European operations of Telogy Inc, one of the US leaders in test equipment rental.