First Derivatives refinances borrowings with £130m bank facilities

Writer, Stock Market Wire
Wednesday, February 6, 2019 - 14:35

First Derivatives said it had secured extended bank facilities of £130m to fund its growth plans.

The five-year facilities comprised a term loan of £65m and a revolving loan facility of £65m.

They would refinance existing borrowings and be partly used to finance the acquisition of the minority shareholding in Kx Systems, due to be made on 29 June.

The term loan and revolving loan facility would both have an interest rate for the first 12 months of Libor plus 2.75%.

After the first 12 months, the a rate ratchet would apply from Libor plus 2.00% to Libor plus 3.00% depending on the level of debt relative to operating earnings.

That represented an improvement on current terms, where the interest rate payable varied from Libor plus 2.25% to Libor plus 3.50%.

The lead arranger was Bank of Ireland with participation from Barclays, First Trust Bank and Silicon Valley Bank.