New long-term funding facilities

RNS Number : 2374J

Redcentric PLC

02 April 2015

 

2 April 2015

Redcentric plc

("Redcentric" or the "Company")

New long-term funding facilities

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is pleased to announce that it has entered into new long-term bank funding facilities (the "New Facilities"). The New Facilities re-finance the Company's existing bank facility, and provide long-term funding stability for Redcentric.

The New Facilities comprise a five-year £40 million Revolving Credit Facility ("RCF"), with a £20 million accordion, along with a £5 million Asset Financing Facility and a £5 million Overdraft Facility. The RCF has been provided jointly by Barclays Bank PLC and The Royal Bank of Scotland PLC, with Lombard Technology Services Ltd providing the Asset Financing Facility and Barclays the Overdraft Facility.

The New Facilities replace the existing bank facility with Barclays and will be partly used to finance the acquisition of Calyx Managed Services Ltd, announced separately today. Following that acquisition, Redcentric will have significant levels of headroom available within the New Facilities.

Tim Coleman, Chief Financial Officer of Redcentric, commented; 

"We are pleased to put these new facilities in place. It provides us with a substantial, cost effective and flexible long-term funding platform which means we can plan our future growth with the confidence of having two significant financing partners alongside us."

Andrew Skinner, Relationship Director, Technology, Media & Telecoms Team at Barclays Bank PLC, commented;

"Barclays is delighted to extend its long-term relationship with Redcentric. The business has developed significantly over time, and we look forward to helping Redcentric grow further over the coming years."

Ethan Handyside, Director, TMT Corporate Coverage, at The Royal Bank of Scotland PLC, commented;

"We have been following Redcentric's progress for some time now and are delighted to participate in the new funding facilities. We very much look forward to building on our positive relationship and supporting Redcentric's strategic growth plans in the future."

Enquiries:

Redcentric plc                                                                                   Tel. [phone]

Tony Weaver, Chief Executive

Fraser Fisher, Chief Operating Officer

Tim Coleman, Chief Financial Officer

finnCap - NOMAD & Broker                                                        Tel. [phone]

Charlotte Stranner / Simon Hicks

MXC Capital Advisory LLP - Financial Adviser                      Tel: [phone]

Marc Young

Newgate                                                                                             Tel: [phone]

Tim Thompson / Jasper Randall

 

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