Last checked at 26 May 2021 07:00
Judges Scientific plc
("Judges Scientific", "Judges", the "Company" or the "Group")
New £60.0 million Bank Facility
Judges Scientific, the group focused on acquiring and developing companies in the scientific instrument sector, is pleased to announce that it has entered into new banking facilities ("Facility") with Lloyds Banking Group plc (the "Bank") which replace its existing banking arrangements with the Bank, which were for an aggregate amount of £35.0 million. This new Facility will provide greater acquisition financing capacity, both in terms of higher frequency and/or larger deals, in support of the Group's buy and build strategy.
The Facility is for an aggregate £60.0 million consisting of a £19.0 million term loan ("Term Loan"), a committed £35.0 million revolving credit facility ("RCF") plus a £6.0 million accordion facility, which can be drawn at the discretion of the Bank. The Facility replaces the Group's previous facilities of which £19.0m remained drawn. The Facility has a five year term ("Borrowing Term") with covenants and interest consistent with the previous bank facilities.
The Term Loan amortises on a straight line basis over the Borrowing Term by quarterly instalments. The RCF is repayable in a bullet at the end of the Borrowing Term. The accordion facility increases by the amount paid off the Term Loan, keeping the overall Facility at £60.0 million throughout the Borrowing Term.
The banking covenants remain similar to the previous banking arrangements, namely:
· Gearing no greater than 2.5 times Adjusted* EBITDA;
· Interest Cover no less than 3 times; and
· Adjusted* EBITDA cover of greater than £7.5 million plus 75% of any future acquired company's EBITDA.
The existing lending facilities via Bordeaux Acquisition Limited ("Bordeaux"), the Group's 88% owned subsidiary, remain unchanged. Bordeaux owns the trading companies of Deben UK Limited and Oxford Cryosystems Limited.
* Adjusted EBITDA excludes adjusting items relating to amortisation of acquired intangible assets, acquisition-related costs, share based payments and hedging of risks materialising after the end of the year.
Brad Ormsby, Judges' Group Finance Director, commented:
"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. This Facility will provide the Group with a substantially larger springboard to continue with the execution of its buy and build growth strategy."
For further information please contact:
|
|
Judges Scientific plc David Cicurel, CEO Brad Ormsby, FD
| Tel: 020 3829 6970
|
Shore Capital (Nominated Adviser & Broker) Stephane Auton Edward Mansfield Sarah Mather
| Tel: 020 7408 4090
|
Liberum (Joint Broker) Bidhi Bhoma Euan Brown
Alma PR (Financial Public Relations) Sam Modlin Justine James Joe Pederzolli | Tel: 020 3100 2222
Tel: 020 3405 0205 |
Notes to editors:
Judges Scientific plc (AIM: JDG), is a group focused on acquiring and developing companies in the scientific instrument sector. The Group consists of 19 businesses acquired since it was re-admitted to AIM in 2005.
The acquired companies are primarily UK-based with products sold worldwide to a diverse range of markets including: higher education institutions, the scientific communities, manufacturers and regulatory authorities. The UK is a recognised centre of excellence for scientific instruments. The Group companies hold five Queen's Awards for innovation and export.
The Group's companies predominantly operate in global niche markets, with long term growth fundamentals and resilient margins.
Judges Scientific maintains a policy of selectively acquiring businesses that generate sustainable profits and cash. Shareholder returns are created through the repayment of debt, organic growth and dividends.
For further information, please visit www.judges.uk.com