TIDMNBI
RNS Number : 6482K
Northbridge Industrial Services PLC
12 April 2018
12 April 2018
Northbridge Industrial Services Plc
("Northbridge" or the "Company" or the "Group")
New banking facility and
Issue of loan notes
Northbridge Industrial Services plc, the industrial services and
rental company, is pleased to announce the early renewal of its
banking facilities with its senior lender, Royal Bank of Scotland
group ("RBS"), until 30 June 2021 in conjunction with securing
long-term funding through the issue of GBP4 million of loan notes
("LN"). The new funding arrangements replace existing banking
facilities with RBS and KBC which were due for renewal in May
2019.
The issue of the LNs has enabled Northbridge to consolidate its
future bank funding solely with RBS group, its existing UK lead
bank, on attractive terms and has allowed the Group to fully repay
KBC. The LNs diversify the Group's funding sources and the absence
of capital repayment during the term provides greater flexibility
to invest for growth whilst servicing the RBS facilities.
The GBP4 million of LNs have been issued at a fixed interest
rate of 8%. The LNs are due for repayment in July 2021, if not
previously converted to equity, and include the option to extend
the term of the instruments by two one-year periods on the consent
of Northbridge and the bondholders. If extended, the interest rate
on the LNs post July 2021 would increase to 10% per annum. The LNs
are secured, through a second charge over the Company.
GBP3,237,000 of the LNs are convertible into 10p ordinary shares
in Northbridge at any time at the discretion of the bondholders at
a conversion price of 125p per share. The balance of GBP763,000
will become convertible on the same terms subject to the passing of
a shareholder resolution to grant authority to allot equity
securities.
GBP3,950,000 of the LNs were issued to funds managed by existing
shareholder, Gresham House Asset Management ("GHAM"). Of the LNs
issued to GHAM, GBP3,187,000 are convertible into ordinary shares
with the remainder becoming convertible subject to the passing of a
shareholder resolution as noted above. The balance of GBP50,000,
which are all convertible, were issued to another investor
introduced by GHAM. Funds managed by GHAM currently holds 3,191,717
shares in Northbridge, representing 12.32% of the total voting
rights.
Iwan Phillips, Finance Director, commenting on the announcement
said:
"We are pleased to announce this new funding package with our
senior bank and a substantial, supportive shareholder as it marks
another key step in the Group's return to growth.
Whilst the Directors remain committed to using cash to further
reduce debt, the extended facilities contain lower fixed repayments
which will allow the Group to invest for growth when appropriate
opportunities arise."
Graham Bird, Head of strategic equity at Gresham House Asset
Management commented:
"We are pleased to be able to support Northbridge by providing
long term, secure funding in a way which has enabled the Company to
simplify its banking arrangements and provides greater flexibility
to invest in growth as the industry recovery gathers pace. The
investment is a good example of our flexible and constructive
interaction with our investee companies and we are excited about
the future potential for Northbridge."
Related Party Transaction
GHAM is a substantial shareholder of the Company and a related
party under the AIM Rules. The issue of the LNs to GHAM constitutes
a related party transaction under the AIM Rules. The directors of
the Company, having consulted with the Company's nominated adviser,
Stockdale Securities Limited, consider that the issue of the LNs to
GHAM are fair and reasonable insofar as the Company's shareholders
are concerned.
For further information
Northbridge Industrial Services plc 01283 531645
Eric Hook, Chief Executive Officer
Iwan Phillips, Finance Director
Stockdale Securities Limited (Nominated Adviser and Broker) 020
7601 6100
Robert Finlay / Antonio Bossi / Henry Willcocks
Buchanan 020 7466 5000
Charles Ryland / Stephanie Watson / Catriona Flint
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist
industrial equipment. With offices or agents in the UK, USA, The
Middle East, Belgium, Germany, France, Australia, New Zealand,
Singapore, China, Brazil and South Korea, Northbridge has a global
customer base. This includes utility companies, the oil and gas
sector, shipping, banking, mining, construction and the public
sector. The product range includes loadbanks, transformers, and oil
tools. Northbridge was admitted to AIM in 2006 since when it has
grown by providing a high level of service, responsiveness and
flexibility to customers. It has grown by the acquisition of
companies in the UK, Dubai, Australia, Belgium, New Zealand and
Singapore and through investing further in those acquired companies
to make them more successful. Northbridge continues to seek
suitable businesses for acquisition across the world.
This information is provided by RNS
The company news service from the London Stock Exchange
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