Porta Communications PLC New Bank Facility (4773H)

TIDMPTCM

RNS Number : 4773H

Porta Communications PLC

08 June 2017

8 June 2017

Porta Communications Plc

("Porta" or "the Company")

New Bank Facility

Porta Communications Plc (AIM: PTCM), the international communications and marketing group, is pleased to announce that it has agreed terms with Clydesdale Bank Plc ("Clydesdale") for a new five year GBP3.3 million revolving credit facility ("RCF"), subject to the execution of a formal RCF agreement.

As part of the strategy to further strengthen the balance sheet, as reported in the Company's final results on 11 May 2017, the purpose of the RCF is to replace the Company's existing GBP3m confidential invoice discounting ("CID") facility in the UK, to provide a working capital facility for the Company and to support the ongoing strategy of recruiting senior practitioners. The RCF will result in an increase of the Company's available credit facilities of up to GBP2.3m over the existing CID facility where available credit fluctuated between GBP1m and GBP1.5m over the last 12 months.

The RCF includes a margin of 3.85% over LIBOR which is a reduction in margin of 135bps when compared to the Company's CID facility, and contains standard representations, undertakings and events of default for a facility of this nature and the Company will also be subject to a set of customary financial covenants.

The RCF agreement, once executed, will contain certain conditions precedent to be satisfied prior to the Company being able to draw down on the RCF, including, inter alia, entering into an intercreditor agreement with the Company's existing loan providers and providing Clydesdale with a copy of the redemption statement for the existing CID facility. The Company has now given notice in relation to the existing CID facility and requested the redemption statement.

A further announcement will be made when the conditions have been satisfied and the facility agreement has been formally implemented.

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The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries

Porta Communications Plc

Steffan Williams, CEO

Rhydian Bankes, CFO

www.portacomms.com

[phone]

Grant Thornton UK LLP (Nominated Adviser)

Philip Secrett

Samantha Harrison

Daniel Bush

[phone]

N+1 Singer (Broker)

James Maxwell

Lauren Kettle

[phone]

Newgate Communications (Media Enquiries)

Bob Huxford

Adam Lloyd

James Ash

[phone]

Notes to Editors:

Porta is a fully integrated communications and marketing group with specialisms including financial, corporate and consumer public relations, public affairs and research and multi-capability marketing, brand and creative communications.

The Group has offices in Abu Dhabi, Beijing, Brisbane, Bristol, Canberra, Cardiff, Edinburgh, Hong Kong, London, Manchester, Melbourne, Singapore and Sydney.

The brands and companies it owns are: Newgate Communications, Redleaf Communications, Publicasity, 2112 Communications and Summit Marketing Services.

Porta Communications' corporate website is - www.portacomms.com

This information is provided by RNS

The company news service from the London Stock Exchange

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June 08, 2017 02:00 ET (06:00 GMT)