Enlarged Bank Facilities

RNS Number : 2134L

Begbies Traynor Group PLC

04 May 2010

 



4 May 2010

Begbies Traynor Group plc

Enlarged Bank Facilities

Begbies Traynor Group plc ("the Group"), the specialist professional services organisation, is pleased to announce the signing of new enlarged committed revolving credit facilities (`RCFs`) totalling £30 million and a new £5 million overdraft facility.  These facilities replace the Group's existing committed £20 million RCF, which was due to expire in April 2011, and £5 million overdraft. 

The new facilities, which are unsecured, are with HSBC (£15m RCF for a term of 4.25 years, together with a £5 million overdraft facility) and Yorkshire Bank (£15m RCF for a term of 3.75 years). As at 31 October 2009, the Group had utilised £16 million of its existing banking facilities of £25 million.

The Group has sought to diversify its committed banking facilities away from a sole bank in favour of bilateral, unsecured arrangements with two banks. Interest on these RCFs will be charged at 2% over LIBOR and on the overdraft at 1.95% over bank base rate. The board believes these are highly competitive packages, reflecting confidence in the Group and its management. Arrangement costs associated with this refinancing, including legal fees, amount to approximately £0.4 million.

Ric Traynor, Executive Chairman of Begbies Traynor Group, said:

"The new facilities provide the Group with a more flexible and longer term financing structure, reflecting the increasing scale and sophistication of our business. The additional funds will enable us to consider both organic investment and acquisition opportunities, principally in the insolvency and restructuring sector."

The Group will issue a trading update for the year ended 30 April 2010 in early June.

For further information, please contact:	www.begbies-traynorgroup.com
Begbies Traynor Group plc	0161 837 1700
Ric Traynor, Executive Chairman
John Gittins, Chief Financial Officer
Shore Capital & Corporate Limited	020 7408 4090
Andrew Raca
Hogarth	020 7357 9477
James White

 

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