Premier Technical Services Group announces £40m in new financing
Premier Technical Services Group
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16:09 31/07/19
Niche specialist services provider Premier Technical Services Group (PTSG) announced new £40m committed facilities on Monday, together with a £10m accordion with HSBC.
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The AIM-traded firm said the revolving credit facility is a £40.0m four-year facility, which would expire in March 2023 with an option to extend by a further year to March 2024.
It said it comprised a committed £30.0m day one facility, together with a £10.0m accordion option, whereby the initial £30.0m facility could be increased by up to £10.0m subject to HSBC's discretion.
The loan, meanwhile, was described as a committed £10.0m four-year facility, which would expire in March 2023 with an option to extend by a further year, and was subject to annual repayments of £1.0m.
Both facilities would replace the group's existing £12.0m revolving credit facility, which was due to expire in September 2020, as well as its £13.0m on-demand loan and £10.0m overdraft facility.
The new facilities were provided with the same covenant tests, but improved interest margins as under the previous facilities.
Drawn amounts would attract a variable margin over LIBOR, based on PTSG’s net debt-to-EBITDA ratio, with undrawn amounts attracting a commitment fee.
“The group's turnover and underlying levels of EBITDA have more than trebled since the original facilities were agreed in 2015,” said PTSG chairman John Foley.
“These enlarged facilities, at better margins, provide us with further headroom to allow PTSG to continue to create ongoing shareholder value through organic growth and carefully selected acquisitions.”
Foley said the board was “delighted” to continue working with HSBC, who had been the company’s bankers since its formation in 2007.
“The new facilities reflect the bank's ongoing confidence in the group's strategic prospects and credit quality.”