Charles Taylor PLC Completion of acquisition (6182T)
October 16 2017 - 1:00AM
UK Regulatory
TIDMCTR
RNS Number : 6182T
Charles Taylor PLC
16 October 2017
Date: 16 October 2017
On behalf of: Charles Taylor plc ("Charles Taylor", the "Group"
or the "Company")
Embargoed until: 0700hrs
Charles Taylor plc
Announcement of refinancing on improved terms
Charles Taylor plc announces today that it has completed the
refinancing of its debt facilities, due to mature in November 2018,
on improved terms. The finance has been provided by Charles
Taylor's existing UK lenders, HSBC and Royal Bank of Scotland with
the addition of a new lender, the Bank of Ireland. These increased
facilities will support Charles Taylor in driving forward its
growth strategy.
The new financing provides an increase in facilities over a
five-year term, maturing in October 2022 with the option to extend
by a further year, details as follows:
-- Revolving credit facility: GBP70m, increased from GBP40m,
including the repayment of an existing GBP10m term loan
-- Accordion facility: GBP25m, increased from GBP10m
The amended facilities continue to be subject to a "margin
ratchet" with the margin varying from 2.0% - 3.0% over 3 month
LIBOR. This is an improvement of 25bp on the previous terms of
2.25% - 3.25%.
In addition, the Group has a US$9m facility with Citizens Bank
which remains in place and additional local overdraft facilities.
Following the refinancing and including existing facilities, but
excluding the Accordion, Charles Taylor has total available
borrowing of c. GBP85m (sterling equivalent).
The facilities contain two key financial covenants which are
tested quarterly: (i) the interest cover in respect of any 12-month
period ending on a quarterly test date shall not be less than 5:1
and (ii) leverage in respect of any 12-month period ending on a
quarterly test date shall not exceed a target of 1.75: and
2.5:1.
David Marock, Group Chief Executive Officer, said:
"This gives Charles Taylor the security of long-term financing
at competitive rates and increases the Group's headroom. It also
gives us additional resources to invest in the Group's further
development, following the acquisitions of Criterion Adjusters and
Metro Risk Management in recent months."
-ends-
For further information:
Charles Taylor plc
David Marock, Group Chief Executive
Officer
Mike Lord, Group Communications Director Via Redleaf Polhill
Redleaf Communications ct@redleafpr.com
Charlie Geller
Alina Haritonova 020 7382 4730
Notes to editors
Charles Taylor plc is a leading provider of professional
services to clients across the global insurance market. The Group
has been providing services since 1884 and today employs over 2,000
staff in 76 offices spread across 29 countries in the UK, the
Americas, Asia Pacific, Europe, the Middle East and Africa.
The Group offers services, principally on a fee-based model and
operates through three businesses - Management, Adjusting and
Insurance Support Services. Charles Taylor also owns insurers,
creating value through select acquisitions and operational
efficiency.
Further information is available at www.ctplc.com
Statements made in this announcement that look forward in time
or that express management's beliefs, expectations or estimates
regarding future occurrences are "forward-looking statements"
within the meaning of the United States federal securities laws.
These forward-looking statements reflect the Group's current
expectations concerning future events and actual results may differ
materially from current expectations or historical results.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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