(Alliance News) - Iomart Group PLC said Friday it has secured a new GBP100 million revolving credit facility.
The Glasgow-based information technology and cloud computing company said it will replace its existing single bank revolving credit facility of GBP80 million which was due to mature on September 30, 2022.
The new facility is provided by a new group of four banks consisting of HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank and has an initial maturity date of 30 June 2025.
The new facility has a 12-month extension option and benefits from a GBP50 million accordion facility in addition to the GBP100 million committed facility.
The company said the new facility will provide them with additional liquidity to be used for working capital purposes and to fund investments in accordance with its five-year strategic plan.
Chief Financial Officer Scott Cunningham said: "We are delighted to have secured an increased and more flexible arrangement through a diversified bank club. Our four new banks, HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank, are very supportive of our refreshed strategy and clear growth plans, underpinned by the existing strong and predictable financial model, with high recurring revenue and good cash generation."
Shares in Iomart were down 2.6% at 147.60 pence on Friday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Iomart (IOM)