TIDMVCAP
RNS Number : 3036C
Vector Capital PLC
12 June 2023
12 June 2023
Vector Capital Plc
("Vector Capital", the "Company" or the "Group")
Loan facilities extended and broadened and Related Party
Transaction
"A cautious, flexible approach to widen and deepen the loan
book"
Vector Capital Plc (AIM: VCAP), a commercial lending group that
offers secured loans to property developers and investors in
England & Wales, is pleased to provide an update on the Group's
loan facilities, including those provided by Vector Holdings
Limited ('Vector Holdings').
Extension of wholesale banking facilities
The Board is pleased to announce that the Company's wholesale
bank debt providers have increased debt facilities by GBP5.0
million, bringing the total wholesale bank facilities available to
the Group to GBP45.0 million.
Within these overall wholesale bank facilities, the Group now
has the capacity to drawdown GBP2.5 million toward loans secured by
second charges, thereby allowing the flexibility for cautious and
selective expansion of the Group's loan book into higher margin
loan agreements.
Extension of loan facilities provided by Vector Holdings
On 29(th) December 2022, the terms of an inter-company debt
agreement with Vector Holdings for a GBP3 million loan (the 'Vector
Holdings Liability'), entered into on 12 November 2020, were
extended. The key terms of the extended debt agreement inclu ded
:
-- Interest will be payable on the outstanding balance of
the Vector Holdings Liability at a rate of 6.25 per cent.
per annum accruing daily and payable quarterly on the
last business day of March, June, September and December;
and
-- The Vector Holdings Liability is unsecured and is repayable
on 31 December 2024.
Under the terms of a Relationship Agreement dated 18(th)
December 2020, Vector Holdings undertook not to demand repayment of
the whole or any part of the Vector Holdings Liability without the
prior written consent of at least two independent directors, except
in the event of an insolvency.
At a Company board meeting on 9(th) June 2023, the Board of
Vector Holdings has agreed to increase the amount of the loan
facility from GBP3 million to GBP4 million, with all other terms
relating to the intercompany debt and the Relationship Agreement
remaining unchanged.
The revised terms of the loan provide the Company with access to
very competitively priced finance, significantly below the rate
currently offered by third party funders, to be employed to
increase the loan book at higher margins.
Related Party Transaction
Vector Holdings is the parent company of the Group and holds a
75% interest in the Company. Mr. Agam Jain, a director of Vector
Capital, is a controlling shareholder of Vector Holdings along with
his immediate family. Accordingly, the extension of the
inter-company debt is deemed to be a related party transaction
pursuant to AIM Rule 13 of the AIM Rule for Companies.
The Company's Directors (excluding Mr. Agam Jain, who is
directly related to this transaction), having consulted with Vector
Capital's Nominated Adviser, WH Ireland Limited, consider the
extended terms of the loan to be fair and reasonable in so far as
the Company's shareholders are concerned.
Agam Jain, CEO of Vector Capital, added: "We are very pleased to
announce the extension and broadening of our wholesale debt
facilities and the extension of competitively priced debt facility
from Vector Holdings. These facilities, combined with our resilient
pipeline of new loan opportunities and the strength of our loan
management systems, provides a base from which to target future
growth as interest rates stabilise."
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
For further information please contact:
Vector Capital plc c/o IFC Advisory
Robin Stevens (Chairman)
Agam Jain ( CEO)
WH Ireland Limited 020 7220 1666
Hugh Morgan, Chris Hardie, Darshan Patel
IFC Advisory Limited 020 3934 6630
Graham Herring, Florence Chandler, Zach Cohen
About Vector Capital:
Vector Capital provides secured, business-to-business loans to
SMEs based in England and Wales. Loans are typically secured by a
first legal charge against real estate. The Company's customers
typically borrow for general working capital purposes, bridging
ahead of refinancing, land development and property acquisition.
The loans provided by the Company are typically for renewable
12-month terms with fixed interest rates.
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END
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