StatPro Group plc, the AIM listed provider of portfolio analytics and data solutions for the global asset management industry, has signed a 5 year senior debt credit facility agreement with The Royal Bank of Scotland plc.
* Secured committed facility to February 2014
* Reduction in net debt position from £14.6 million (unaudited) to £13.4 million*
* Exceptional overall gain on redemption amounting to approximately £1.2 million pre-tax
* Balance sheet strengthened
* Total available funds amount to £19.25 million
*Proforma net debt position as at 31 December 2008
This new facility replaces existing banking arrangements with Kaupthing Singer & Friedlander Limited ('KSF') which was placed into administration in October 2008. Following an in-depth review of alternative financing arrangements the Board concluded that this new senior debt facility was the most optimal financing structure for the business. The new five year facility with its reduced repayment profile and increased flexibility will not only strengthen the balance sheet but will ensure we are well positioned to invest in organic business generation initiatives where it is in the best interest of StatPro and its shareholders.
The new facilities comprise:
* Term loan of £7.0 million with bullet repayment in February 2014
* Multi-currency fully revolving five-year amortising loan amounting to an initial value of £10.25 million with six monthly repayments
* Flexibility to repay early with no penalty and to redraw within the amortising limits
* Multi-currency revolving working capital loan amounting to £2.0 million
* Average margin is 345 bps over LIBOR which decreases by 25 bps once gross debt to EBITDA is less than 1.75
* Margin reduces by a further 50 bps on the revolving facility once gross debt to EBITDA is less than 1.0
Exceptional gain on redemption
The agreed value of debt (excluding accrued interest of approximately £0.2 million) redeemed with KSF amounted to a total of £17.6 million. The carrying value of the debt at 31 December 2008 was approximately £19.1 million (unaudited) and therefore this redemption will result in an overall exceptional pre-tax gain of approximately £1.5 million in 2009. (£1.2 million after writing off previously capitalised financing costs of approximately £0.3 million).
The carrying value of the Group's net debt at the end of December 2008 was £14.6 million (unaudited). The net debt position following this refinancing would have been approximately £13.4 million (on a proforma basis at the end of December 2008).
Strategy & Outlook
Whilst the new facility provides greater repayment flexibility than our previous loan it is the intention of the Board to focus on reducing overall debt levels at a prudent rate whilst maintaining our current dividend policy. StatPro's business model is strongly cash generative and this will stand us in good stead over the coming years.
Justin Wheatley, Chief Executive, commented: 'We are delighted to have put in place new financing arrangements that bring immediate benefits to the financial health of the Company. Given the current economic environment the securing of this facility is testament to the strength of the business and its future prospects. In particular I believe it recognises that our products enable our clients to do more for less, which is essential in challenging market conditions. Given continued high levels of demand for our products and a high level of visibility afforded us by our business model, we view the future with confidence.'