LONDON (Alliance News) - Premier Technical Services Group PLC said Monday that it has agreed a new GBP40 million committed loan facility with a GBP10 million accordion with HSBC UK Bank PLC.
The revolving credit facility is a GBP40 million four year facility which expires in March 2023 with an option to extend by a further year to March 2024. The loan is subject to annual repayments of GBP1.0 million.
It comprises a committed GBP30 million day one facility whereby the initial credit facility may be increased by up to GBP10 million subject to HSBC's discretion. The facilities will come with the same covenant tests but improved interest margins. Undrawn amounts will attract a commitment fee.
The loan facilities replace the electrical testing services provider's existing GBP12 million revolving credit facility, which was due to expire in September 2020, GBP13 million on demand loan and a GBP10 million overdraft facility.
"The group's turnover and underlying levels of EBITDA have more than trebled since the original facilities were agreed in 2015. 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," said Chair John Foley.
Premier Technical shares traded up 1.2% at 124 pence per share on Monday.