16th Sep 2016 09:10
LONDON (Alliance News) - Science Group PLC Friday said it has agreed new 10 year bank facilities after reviewing its capital structure.
The company said that, with significant freehold property assets and the "unprecedented current low interest rate environment", it had concluded that increasing the amount and term of its debt could benefit its long term planning and the implementation of its corporate strategy - "particularly if this could be achieved without a material increase in the group's financing risk profile".
As a result Science Group has negotiated a new 10 year fixed term loan of GBP15 million. Phased interest rate swaps will fully hedge the loan, resulting in a 10 year fixed effective interest rate of around 3.4%, Science Group said, comprising a margin over 3 month LIBOR and the cost of the swap instruments to fix the interest rate over the period.
The repayment profile of the loan is GBP1 million per year over the term, with the remaining GBP5 million to be paid on the loan's expiry. It will pay one off costs of GBP300,000 in relation to the cancelling of its prior loan and the arrangement of the new facilities.
Shares in Science Group were up 2.5% at 145.00 pence Friday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Science Group