Cloud computing company Iomart has agreed to a refinancing, it announced on Friday, replacing its single Â£ 80million revolving bank credit facility that was due to mature on September 30, 2022 with a new Â£ 100million revolving credit facility.
The AIM-listed company said the facility was provided by a new group of four banks made up of HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank.
He said the new facility had an original maturity date of June 30, 2025 with a 12-month extension option and benefited from a Â£ 50million accordion facility in addition to the committed Â£ 100million facility. sterling.
The facility had a cost of borrowing at the company’s current debt levels of 180 basis points against SONIA, compared to 150 basis points against LIBOR on the previous facility.
An arrangement fee would be payable in advance, in addition to a commitment fee on the unused portion of the new facility on terms equivalent to the previous facility.
The company said the new revolving credit facility and accordion, if exercised, would provide it with additional liquidity for working capital purposes and to fund investments in accordance with its five-year strategic plan.
âWe are delighted to have secured an increased and more flexible deal through a diverse banking club,â said Scott Cunningham, Chief Financial Officer.
âOur four new banks, HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank, fully support our renewed strategy and clear growth plans, underpinned by the existing strong and predictable financial model, with high recurring revenues and a good cash flow. generation.”
At 12:00 GMT, shares of the Iomart group were down 1.06% to 149.4p.