14th Oct 2005 10:22
Tribal Group PLC14 October 2005 New bank facilities of £180 million signed Tribal Group plc ('Tribal' or the 'Group') is pleased to announce that new fiveyear bank facilities totalling £180m have been signed with HBoS and Royal Bankof Scotland as co-arrangers and co-underwriters. The facilities replace theGroup's existing arrangements and comprise revolver funds of £125 million, a newperformance bond facility of £40 million and loan note guarantees of up to £15million. The performance bond facility will be used to support major tenders as part ofTribal's strategy to compete for larger government contracts, in particular, thesecond wave of NHS contracts for diagnostics and elective surgery for which itshealth delivery business, Mercury Health, will be competing. The loan note guarantee facility is solely used to provide cash-backed securityto vendors as part of any acquisition finance required by the Group. There will be no material change to the net interest cost for the current year,but Tribal expects a modest saving for the year ending 31 March 2007. Commenting on the announcement, Simon Lawton, Tribal's Group Finance Directorsaid: "We are delighted to announce the new package of bank facilities with ourleading bank syndicate partners, HBoS and Royal Bank of Scotland. The five yeardeal and increase in the revolver from £100m to £125m, together with the newperformance bond facility, give the Group sufficient flexibility to continue tobuild its business and compete for major government contract initiatives such asthe second wave of ISTC contracts." Enquiries:Tribal Group plcHenry Pitman, Chief ExecutiveSimon Lawton, Finance DirectorTel: 01285 886020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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