STM Group PLC GBP5.5m Credit Facility To Fund M&A Growth Strategy (4498E)
November 06 2020 - 12:40PM
UK Regulatory
TIDMSTM
RNS Number : 4498E
STM Group PLC
06 November 2020
STM Group Plc
("STM" or "the Company" or "the Group")
Signing of credit facility to fund
M&A growth strategy
STM Group Plc (AIM:STM), the cross-border financial services
provider, is pleased to announce that it has this week signed a
credit facility with Royal Bank of Scotland (International) Limited
("RBSI"), as first notified on 13 August 2020 when credit terms
were agreed in principle by the bank, to support its M&A growth
strategy.
The credit facility is for GBP5.5m (the "Facility"), is to be
used purely for acquisitions, and is expected to be drawn down in
line with acquisition milestones by 22 April 2022 at the
latest.
The Facility has a 5 year term with capital repayments
structured over ten years and a final instalment to settle the
outstanding balance in full at the end of the 5 years. Interest on
the drawn funds will be charged at 3.5% per annum over the Sterling
Relevant Reference Rate, with the undrawn balance charged at an
interest rate of 1.75% per annum over the Sterling Relevant
Reference Rate.
The Facility is subject to customary cashflow to debt service
liability ratio and EBITDA to debt service liability ratio
covenants tested quarterly and is secured by a capital guarantee
provided by a number of non-regulated holding subsidiary companies
within the Group and a debenture over these companies.
For further information, please contact:
STM Group Plc www.stmgroupplc.com
Alan Kentish, Chief Executive Officer Tel: Via Walbrook
Therese Neish, Chief Financial Officer
finnCap www.finncap.com
Matt Goode / Emily Watts - Corporate Finance Tel: +44 (0) 20 7220
Tim Redfern / Richard Chambers - ECM 0500
Walbrook www.walbrookpr.com
Tom Cooper / Paul Vann Tel: +44 (0) 20 7933
8780
Mob: +44 (0) 797 122
1972
tom.cooper@walbrookpr.com
Notes to editors:
STM is a multi-jurisdictional financial services group which is
listed on the AIM Market of the London Stock Exchange. The Group
specialises in the administration of client assets in relation to
retirement, estate and succession planning and wealth
structuring.
Today, the Group has operations in the UK, Gibraltar, Malta,
Jersey and Spain. STM has developed a range of pension products for
UK nationals and internationally domiciled clients and has two
Gibraltar Life Assurance Companies which provide life insurance
bonds - wrappers in which a variety of investments, including
investment funds, can be held.
STM's growth strategy is focussed on both organic initiatives
and strategic acquisitions.
Further information on STM Group can be found at
www.stmgroupplc.com
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