(Sharecast News) - Security and privacy software company Kape has entered into an agreement with its existing bank syndicate of Bank of Ireland, Barclays Bank and Citi Commercial Bank, as well as three new banks being Citizens Bank, BNP Paribas and Leumi Bank, to provide new senior secured bank facilities of up to $220m, it announced on Friday.
The AIM-traded firm said the new debt facilities comprise a $120m senior secured term facility, a $10m revolving credit facility, and a $90m uncommitted acquisition facility.
It said Bank of Ireland is the agent bank, adding that the new facilities would replace all of its existing loan facilities.
The new debt facilities have a three-year term, with an option to extend by up to an additional two years, with funding expected to take place next week.
Kape said 50% of the term facility would be amortised on a quarterly basis across 36 months.
The new facilities would carry a margin of 2% above the applicable reference rate per annum, reducing the debt cost from the 6% interest on the existing subordinated bridge loan.
On 5 March, Kape entered into a bridge loan facility with TS Next Level Investments, an affiliate of Unikmind, to finance its acquisition of Webselenese and with the intention of replacing it with a long-term facility from commercial banks.
The proceeds of the term facility would now be used to repay in full and cancel each of the bridge loan and the company's existing $40m term facility.
It said its net debt-to-proforma EBITDA ratio was 1.6x.
"We are pleased to have broadened our relationships with Bank of Ireland, Barclays Bank and Citi and to welcome three new banks, Citizens Bank, BNP Paribas and Leumi Bank, as Kape continues to progress on its exciting growth trajectory," said chief financial officer Moran Laufer.
"This ongoing support from top tier global financial institutions is a clear endorsement of our strategy and gives us the firepower to further execute on our expansion.
"We continue to remain acutely focused on growing our market reach and creating value for all our stakeholders."
At 1313 BST, shares in Kape Technologies were up 0.91% at 330.99p.
30 Mar 2023 13:24
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