Judges Scientific enters into new £60m banking facilities with Lloyds
Scientific instrument sector investor Judges Scientific has entered into new banking facilities with Lloyds Banking Group, it announced on Wednesday, to replace its existing arrangements with Lloyds, which were for a total of £35m.
The AIM-traded firm said the new facility would provide greater acquisition financing capacity, both in terms of higher frequency and larger deals, in support of its buy-and-build strategy.
It said the facility was for a total of £60m, consisting of a £19m term loan, a committed £35m revolving credit facility, and a £6m accordion facility which could be drawn at the discretion of the bank.
The facility replaced Judges’ previous facilities, of which £19m was drawn.
Judges Scientific said the new facility had a five-year term, with covenants and interest consistent with the previous bank facilities.
The term loan would amortise on a straight-line basis over the term by quarterly instalments, and the revolving credit facility was repayable in a bullet at the end of the term.
Judges said the accordion facility would increase by the amount paid off the term loan, keeping the overall facility at £60m throughout the borrowing term.
The banking covenants remained similar to the previous banking arrangements, with a gearing of no greater than 2.5x adjusted EBITDA, interest cover no less than 3x, and adjusted EBITDA cover of greater than £7.5m plus 75% of any future acquired company's EBITDA.
It said the existing lending facilities via Bordeaux Acquisition, Judges’ 88%-owned subsidiary, remained unchanged.
Bordeaux owns the trading companies of Deben UK and Oxford Cryosystems.
“We are delighted that Lloyds and its relationship team have continued to show their long-term desire to stand behind the group's growth trajectory,” said group finance director Brad Ormsby.
“This facility will provide the group with a substantially larger springboard to continue with the execution of its buy and build growth strategy.”
At 1134 BST, shares in Judges Scientific were up 1.92% at 6,095p.