Judges Scientific enters into new £60m banking facilities with Lloyds

(Sharecast News) - 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.