21st May 2014 11:14
LONDON (Alliance News) - Financial services business Fairpoint Group PLC Wednesday said that it has signed a new bigger banking facility for GBP20 million with AIB Group UK PLC.
The company, which provides advice and solutions to financially stressed consumers, said the new enlarged banking facility replaces its existing committed GBP13 million facility with PNC Financial Services UK Ltd, which was due to expire in April 2016.
Fairpoint said the new banking facility, which is secured and has a five-year term, comprises a GBP12 million revolving credit facility and an GBP8 million term loan. It said it will use the term loan to finance the acquisition and deal costs for the proposed acquisition of Simpson Millar LLP Solicitors in a deal worth an initial GBP9 million in cash and shares, with a further earn-out consideration of up to GBP6million.
In a statement last month, Fairpoint said the acquisition of the consumer legal services business is part of its strategy to diversify its income streams into new sectors such as legal services. It said the acquisition is expected to be immediately earnings enhancing on an adjusted basis.
Fairpoint shares were down 1.1% at 150.00 pence before midday Wednesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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