?55 Million Bank Facilities

RNS Number : 2601Q

Alliance Pharma PLC

11 October 2013

 



For immediate release

11 October 2013

 

ALLIANCE PHARMA PLC

("Alliance" or the "Company")

£55 Million Bank Facilities

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces that it has successfully negotiated new enlarged bank facilities of £55 million with Lloyds Bank and Royal Bank of Scotland on improved terms.

The new facilities, which immediately replace the existing facilities and will be available until 30 June 2018, comprise a £25 million term loan and a £25 million revolving credit facility ("RCF").  There will also be a £5 million working capital facility.  Net bank debt was £25.0 million at 30 September 2013.  The RCF, which will be undrawn initially, will be available to fund acquisitions.

The main financial covenants specify maximum leverage (the ratio of net bank debt to EBITDA) of 2.5 times, minimum interest cover (the ratio of EBITDA to finance charges) of 4.0 times and operating cash flows must exceed debt service cash flows.

Commenting on the re-financing, Richard Wright, Alliance Pharma's Finance Director, said: "We are delighted to put in place these new facilities from Lloyds and RBS.  They deliver an improved maturity profile and reduction in cost whilst leaving Alliance well placed to fund acquisition opportunities which are anticipated over the coming years."

For further information:

Alliance Pharma plc	+ 44 (0) 1249 466966
John Dawson, Chief Executive
Richard Wright, Finance Director
Buchanan	+ 44 (0) 20 7466 5000
Mark Court / Fiona Henson / Sophie Cowles
Numis Securities Limited	+ 44 (0) 20 7260 1000
Nominated Adviser: Michael Meade / Oliver Cardigan / Freddie Barnfield
Corporate Broking: David Poutney

Notes to editors:

About Alliance

Alliance, founded in 1998, is an AIM listed speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has a strong track record of acquiring the rights to established niche products and owns or licenses the rights to more than 60 products and continues to explore opportunities to expand the range.

Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.

 

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