11th Oct 2013 07:34
LONDON (Alliance News) - Alliance Pharma PLC Friday said it has successfully negotiated new enlarged bank facilities of GBP55 million with Lloyds Bank and Royal Bank of Scotland on improved terms, meaning its has money for acquisitions.
The speciality pharmaceutical company said the facilities, which will be available until June 30, 2018, comprise a GBP25 million term loan, a GB25 million revolving credit facility, and a GBP5 million working capital facility.
Its net bank debt stood at GBP25 million at the end of September, meaning the revolving credit facility will be undrawn initially and available to fund acquisitions.
The main financial covenants on the facilities specify a maximum ratio of net bank debt to earnings before interest, tax, depreciation and amortisation of 2.5 times, minimum interest cover of 4.0 times and operating cash flows must exceed debt service cash flows.
"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," Finance Director Richard Wright said in a statement.
Alliance Pharma shares were up 1.1% at 35.25 pence early Friday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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