13th Nov 2014 10:06
LONDON (Alliance News) - Smart Metering Systems PLC Thursday said it had agreed with its lenders to increase the loan-to-value ratio on its GBP105 million revolving credit facilities to 100%, from 85%, meaning it can now completely fund each meter it installs in a phased programme using the facilities.
The facilities were arranged in March with Barclays, as lead bank, Clydesdale Bank and Bank of Scotland. Smart Metering uses the facility to buy meter assets as part of a phased installation programme, and the increase in the loan-to-value ratio means it can now fund the whole cost of each meter using the facility, rather than just 85% of the cost previously.
The company said it expects to make the first drawdown under the revised facility this month. All the other terms on the facility, including the pricing, are unchanged, it said.
"I am delighted that, once again, our lenders have demonstrated their willingness to support SMS and its strategy and that we have been able to agree this important amendment to an already competitive facility which will provide the company with significant additional financial flexibility," Chief Executive Alan Foy said.
Smart Metering Systems shares were up 2.9% at 360.00 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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