11 Jul 2016 10:07
11 July 2016
Private & Commercial Finance Group plc
("PCFG", the "Company" or the "Group")
New Debt Facility
Private & Commercial Finance Group (AIM: PCF), the AIM-quoted finance house, is pleased to announce that it has entered into a new 5 year debt facility of up to £83 million ("Facility") provided by its majority shareholder Bermuda Commercial Bank Limited ("BCB"). The Facility is denominated in pounds sterling and provides a commitment for up to a maximum of USD $100m. PCFG intends to use the Facility primarily to fund future growth in new business origination. The Facility, which matures on 7 July 2021, is subject to a guarantee provided by PCFG and secured over certain assets of the Group.
Scott Maybury, CEO, commented; "We are delighted to agree this significant additional funding on attractive terms to grow our portfolio of receivables. This delivers another of the synergies we identified when becoming a subsidiary of Bermuda Commercial Bank and provides further evidence of their support of our strategic objectives."
Related party transaction
BCB is a related party under the AIM Rules for Companies ("AIM Rules") by virtue of being a substantial shareholder in the Company as defined in the AIM Rules. The entry into the Facility therefore constitutes a related party transaction as defined in the AIM Rules.
Accordingly, as required by the AIM Rules, the independent directors (being each of the directors with the exception of David Morgan, who is also a director of BCB and its parent company, Somers Limited; Andrew Brook, who is a director of BCB; and Mark Brown who is a director of Stockdale Securities Limited, a subsidiary of Somers Limited), having consulted with the Company's nominated adviser, Panmure Gordon (UK) Limited, consider that the terms of the Facility are fair and reasonable insofar as the Company's shareholders are concerned.
For further information please contact:
Private & Commercial Finance Group Scott Maybury, Chief Executive Officer Robert Murray, Managing Director David Bull, Finance Director
| Tel: +44 (0) 20 7222 2426 |
Tavistock Communications Jos Simson / Niall Walsh
| Tel: +44 (0) 20 7920 3150 |
Panmure Gordon (UK) Limited Fred Walsh / Peter Steel / Atholl Tweedie
| Tel: +44 (0) 20 7886 2500 |
Stockdale Securities Henry Willcocks
| Tel: +44 (0) 20 7601 6100 |
About Private & Commercial Finance Group plc (www.pcfg.co.uk)
Established in 1994, Private & Commercial Finance Group plc is an AIM-quoted finance house which has two main operating divisions:
• Consumer Finance which provides finance for motor vehicles to consumers; and
• Business Finance which provides finance for vehicles, plant and equipment to SMEs.
The Group has a highly efficient and scalable business model, utilising its specially developed internet-based proposal system to service national networks of brokers and suppliers.