Charles Taylor PLC Announcement of refinancing on improved terms (6621T)

TIDMCTR

RNS Number : 6621T

Charles Taylor PLC

16 October 2017

The headline for the Charles Taylor PLC announcement released on 16 October 2017 at 07.00 under RNS No 6182T should read "Announcement of refinancing on improved terms".

The announcement text is reproduced in full below.

Date: 16 October 2017

On behalf of: Charles Taylor plc ("Charles Taylor", the "Group" or the "Company")

Charles Taylor plc

Announcement of refinancing on improved terms

Charles Taylor plc announces today that it has completed the refinancing of its debt facilities, due to mature in November 2018, on improved terms. The finance has been provided by Charles Taylor's existing UK lenders, HSBC and Royal Bank of Scotland with the addition of a new lender, the Bank of Ireland. These increased facilities will support Charles Taylor in driving forward its growth strategy.

The new financing provides an increase in facilities over a five-year term, maturing in October 2022 with the option to extend by a further year, details as follows:

-- Revolving credit facility: GBP70m, increased from GBP40m, including the repayment of an existing GBP10m term loan

   --    Accordion facility: GBP25m, increased from GBP10m 

The amended facilities continue to be subject to a "margin ratchet" with the margin varying from 2.0% - 3.0% over 3 month LIBOR. This is an improvement of 25bp on the previous terms of 2.25% - 3.25%.

In addition, the Group has a US$9m facility with Citizens Bank which remains in place and additional local overdraft facilities. Following the refinancing and including existing facilities, but excluding the Accordion, Charles Taylor has total available borrowing of c. GBP85m (sterling equivalent).

The facilities contain two key financial covenants which are tested quarterly: (i) the interest cover in respect of any 12-month period ending on a quarterly test date shall not be less than 5:1 and (ii) leverage in respect of any 12-month period ending on a quarterly test date shall not exceed a target of 1.75: and 2.5:1.

David Marock, Group Chief Executive Officer, said:

"This gives Charles Taylor the security of long-term financing at competitive rates and increases the Group's headroom. It also gives us additional resources to invest in the Group's further development, following the acquisitions of Criterion Adjusters and Metro Risk Management in recent months."

-ends-

 
 For further information: 
 Charles Taylor plc 
 David Marock, Group Chief Executive 
  Officer 
 Mike Lord, Group Communications Director    Via Redleaf Polhill 
 Redleaf Communications                      [e-mail] 
 Charlie Geller 
  Alina Haritonova                           020 7382 4730 
 

Notes to editors

Charles Taylor plc is a leading provider of professional services to clients across the global insurance market. The Group has been providing services since 1884 and today employs over 2,000 staff in 76 offices spread across 29 countries in the UK, the Americas, Asia Pacific, Europe, the Middle East and Africa.

The Group offers services, principally on a fee-based model and operates through three businesses - Management, Adjusting and Insurance Support Services. Charles Taylor also owns insurers, creating value through select acquisitions and operational efficiency.

Further information is available at www.ctplc.com

Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 16, 2017 03:21 ET (07:21 GMT)