20th Dec 2022 10:58
(Alliance News) - NCC Group PLC on Tuesday said it entered into a new GBP162.5 million multi-currency revolving credit facility for a four-year term.
The Manchester-based cybersecurity firm said the new facility replaces its previous GBP100 million credit facility and USD70 million term loan, which was due to expire in June 2024.
The facility will mature in December 2026, and has a GBP75 million uncommitted accordion option. It will be provided by the National Westminster Bank PLC, HSBC UK Bank PLC, ING Bank NV and Fifth Third Bank NA.
NCC said the interest rate of the facility has a margin payable above Sterling Overnight Index Average
and Secured Overnight Financing Rate between 1.00% to 2.25%.
The group's net debt was around GBP55 million at November 30, 2022, following its USD216.1 million acquisition of the intellectual property management business of Iron Mountain Inc, an information management services company, in June last year. The group's net debt for the year that ended May 31 was GBP85.0 million.
"We continue to demonstrate effective cash management and our balance sheet strength enables us to continue to fund organic and inorganic opportunities as they arise," Chief Financial Officer Tim Kowalski said.
Kowalski continued: "This new facility, which adds another established institutional lender to our banking group, will provide NCC Group with additional firepower and flexibility as we evolve our strategy in 2023."
NCC shares were down 0.6% to 198.00 pence on Tuesday morning in London.
By Jaskeet Briah, Alliance News reporter
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