New Term Loan and Acquisition Facility

RNS Number : 6123A

Judges Scientific PLC

23 December 2014

 

Judges Scientific plc

23 December 2014

Judges Scientific plc

New Term Loan and Acquisition Facility

Judges Scientific plc ("the Group") is pleased to announce that it has agreed a new acquisition facility with its bank, Lloyds Bank plc (the "Bank").

All existing term loans, with the exception of the loans granted to the Company's 51% owned subsidiary, Bordeaux Acquisition Limited, have been consolidated into one £11.3 million term loan repayable in 20 quarterly instalments (the "Term Loan"). In addition, the Group has entered into a new £10.0 million revolving acquisition facility (the "Acquisition Facility"). The Acquisition Facility has been put in place to simplify the acquisition funding process both for "permitted acquisitions", which fall within set criteria, and for larger transactions where the consent process has been streamlined. The 'revolving' characteristic also serves to streamline the process in respect of any increase in the Acquisition Facility that may be agreed with the Bank in the future.

Taken together, the introduction of the Acquisition Facility alongside the Term Loan will enable the Group to operate its facilities in a more cost effective manner through the optimum application of cash generated from the business. In particular, it will eliminate the need to maintain large unproductive cash balances. The immediate impact on earnings per share is not expected to be material. However, the new pricing structure will ensure that the interest margin for both facilities, which will fluctuate by reference to gearing, will create opportunities for cost benefits.

Ralph Cohen, the Company's Finance Director, commented: "The Group has reached a size and scale which warrants a more appropriate banking structure. This will facilitate M&A transactions and is testament to Lloyds Bank's long-standing support of the Group's growth strategy".

For further information please contact:

Judges Scientific plc

David Cicurel, CEO

Tel: [phone]

Shore Capital (Nominated Adviser & Broker)

Pascal Keane

Edward Mansfield

Tel: [phone]

Cardew Group (Financial Public Relations)

Melvyn Marckus

Tel: [phone] or 07775 896 491

 

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