Tribal Group PLC
14 October 2005
New bank facilities of £180 million signed
Tribal Group plc ('Tribal' or the 'Group') is pleased to announce that new five
year bank facilities totalling £180m have been signed with HBoS and Royal Bank
of Scotland as co-arrangers and co-underwriters. The facilities replace the
Group's existing arrangements and comprise revolver funds of £125 million, a new
performance bond facility of £40 million and loan note guarantees of up to £15
million.
The performance bond facility will be used to support major tenders as part of
Tribal's strategy to compete for larger government contracts, in particular, the
second wave of NHS contracts for diagnostics and elective surgery for which its
health delivery business, Mercury Health, will be competing.
The loan note guarantee facility is solely used to provide cash-backed security
to vendors as part of any acquisition finance required by the Group.
There will be no material change to the net interest cost for the current year,
but Tribal expects a modest saving for the year ending 31 March 2007.
Commenting on the announcement, Simon Lawton, Tribal's Group Finance Director
said: 'We are delighted to announce the new package of bank facilities with our
leading bank syndicate partners, HBoS and Royal Bank of Scotland. The five year
deal and increase in the revolver from £100m to £125m, together with the new
performance bond facility, give the Group sufficient flexibility to continue to
build its business and compete for major government contract initiatives such as
the second wave of ISTC contracts.'
Enquiries:
Tribal Group plc
Henry Pitman, Chief Executive
Simon Lawton, Finance Director
Tel: 01285 886020
This information is provided by RNS
The company news service from the London Stock Exchange
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