22nd Apr 2008 07:00
Opsec Security Group PLC22 April 2008 22nd April 2008 OpSec Security Group plc ("OpSec" or "the Company") New Funding Arrangements with the Royal Bank of Scotland plc OpSec Security Group plc, the supplier of anti-counterfeiting technologies andservices is pleased to announce that it has entered into a term loan andrevolving credit facility of up to £19,000,000 with the Royal Bank of Scotlandplc ("RBS"). The facility is split into three separate tranches designated Facility A,Facility B and Facility C. Facility A is a £12,500,000 multi currency term loan, bearing an interest ratewhich is the sum of three month LIBOR, a margin of 1.5% (subject to a marginratchet of 25 basis points) and the mandatory costs rate calculated by RBS.Facility A has a term of five years with a quarterly repayment profile commencingon 31st March 2009 and amortising to a £3,000,000 bullet repayment on 31st March2013. This facility will be used to refinance the Company's acquisition of LightImpressions International Ltd. announced on 2nd April 2008 and fund other plannedacquisitions. Facility B is a £2,000,000 multi currency revolving credit facility, bearing thesame interest rate as Facility A. Facility B has a five year term with eachrevolving loan under the facility being repayable on the last day of itsquarterly interest period. All outstanding Facility B loans must be repaid infull (together with the accrued interest in respect of such loans) on the fifthanniversary of the first drawdown of any of the facilities by OpSec. Thisfacility will be used to fund the Company's working capital requirements. Facility C is a £4,500,000 multi currency revolving credit facility, bearing thesame interest rate as Facility A. Facility C has a term of five years with eachrevolving loan under the facility being repayable on the last date of itsquarterly interest period. On or prior to the third anniversary of the firstdrawdown of Facility C by OpSec it must agree an amortisation profile with RBSspecifying dates upon which the Facility C commitment will be permanentlyreduced by specified amounts. This facility will be used to repay the Company'scurrent borrowings with Bank of America and to finance its capital expenditureplans. Commenting on the funding Mark Turnage, Chief Executive Officer, said: "We are pleased to announce these new funding arrangements which will providecapital for the next phase of the Company's development. We believe the marketsfor our products continue to expand and that there are opportunities to enhanceOpSec's position in these markets. This new funding will allow us to continue togrow the business by investing in the Company's operations and make furtherprogress with our targeted acquisitions." - ends - Enquiries: OpSec Security Group plc: 0191 417 5434Mike Angus, Finance Director:Mark Turnage, Chief Executive Oriel Securities Limited: 0207 710 7600Andrew Edwards/Neil Langford Weber Shandwick Financial: 020 7067 0700Nick Oborne/Stephanie Badjonat This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
OSG.L