12th Apr 2016 11:58
LONDON (Alliance News) - Gresham House PLC, the AIM-listed specialist money manager, on Tuesday said Kleinwort Benson Bank Ltd agreed to provide it with a GBP7.0 million borrowing facility, with the money to be used to repay existing debt and fund working capital and investment.
The Kleinwort facility is secured against Gresham House's property assets and the deferred money due from the sale of its 25.8 acre site at Newton-le-Willows to Persimmon Homes Ltd in September 2015.
Scheduled to be repaid in three portions, with the first two equal payments of GBP2.1 million due in March 2017 and the same month the next year and the remainder one year after that, the facility is designed to match money due from persimmon over the next three years.
Part of the funding will be used to repay an existing GBP2.85 million facility with Co-operative Bank and GBP670,000 of short-term loan notes issued in connection with the acquisition of UK commercial forestry money manager Aitchesse Ltd in November. The remainder will provide funds for working capital and investment purposes.
"This is a further element in the development of our long term plan, and we are pleased we have secured this new facility with Kleinwort Benson. It has enabled us to utilise the legacy property assets of the group to support our strategy of building Gresham House into a specialist asset manager of differentiated and illiquid alternative investment strategies that generate superior long term investment returns," Chief Executive Officer Anthony Dalwood said in a statement.
James Lockyer of Kleinwort Benson said: "Gresham House is led by an experienced management team and over the past year we have seen rapid progress in pursuance of their strategy to develop a specialist asset manager. We are pleased to be part of the next stage of the company's development, supporting their plans for growth."
Shares in Gresham House were down 0.6% at 310.52 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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