New £3 million SLN Programme & New Contract Wins

30 January 2015

Hayward Tyler Group plc

("Hayward Tyler", the "Company" or "Group")

New £3.0 million Secured Loan Note Programme established

New contract wins

Hayward Tyler Group plc (AIM: HAYT.L), the specialist engineering group, is pleased to report the establishment of a £3.0 million secured loan note programme ("the Programme"), and the first issue under the Programme raising £1.635 million before costs ("the First Issue") against a target of £1.5 million to support the first phase of the planned development of the Luton business. It is anticipated that a second issue under the Programme will take place by summer 2015 to match the expenditure profile of the expansion plans. The Company is also pleased to announce further contract orders valued at over £1.0 million.

The Programme 

The proceeds from the Programme will be used specifically to complement the £3.5 million Regional Growth Fund grant, which supports the on-going expansion of the Group's main manufacturing facilities at Luton. The expansion, which commenced in December 2014, will increase the factory's footprint by around 40%, enhance the Group's capabilities in the civil nuclear and subsea oil & gas markets, and result in a potential doubling of capacity.

Loan notes issued under the Programme are secured and rank behind the Group's senior banking and borrowing facilities provided by RBS. The loan notes bear a 7% coupon and are subject to the same financial covenants as the Group's senior borrowing facilities. The loan notes will today be listed on the Bermuda Stock Exchange. Under the Programme, the First Issue will be repaid by the Company at the end of its three year term.

Lesmoir-Gordon, Boyle & Co. Limited, the London corporate finance and investment advisory firm, acted as arranger and placement agent in respect of the Programme. Investors include high net worth individuals and institutions.

Contract Wins

The latest contract wins secured by the Group are for nine specialist pumps for deployment in the British Royal Navy's Astute Class and Vanguard Class submarines.

Ewan Lloyd-Baker, CEO of Hayward Tyler, commented:

"We are greatly encouraged by the progress we continue to make in our core markets both domestically and internationally, which allows us to proceed with our expansion plans with confidence. As we invest in our future, a key KPI for the Group continues to be to keep our net debt to EBITDA firmly within a ratio of 2:1. The facilities provided by the Programme not only allow us to stay well within our stated KPI but give us the additional flexibility to progress the Group's development."

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