STM Group signs £5.5m credit facility for acquisitions

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StockMarketWire.com – Cross-border financial services provider STM Group has signed a credit facility with Royal Bank of Scotland for £5.5m to support its M&A growth strategy.

The credit facility is to be used purely for acquisitions, and is expected to be drawn down in line with acquisition milestones by 22 April 2022 at the latest.

The facility has a 5-year term with capital repayments structured over ten years and a final instalment to settle the outstanding balance in full at the end of the 5 years. Interest on the drawn funds will be charged at 3.5% per annum over the Sterling Relevant Reference Rate, with the undrawn balance charged at an interest rate of 1.75% per annum over the Sterling Relevant Reference Rate.

The facility is subject to customary cashflow to debt service liability ratio and EBITDA to debt service liability ratio covenants tested quarterly and is secured by a capital guarantee provided by a number of non-regulated holding subsidiary companies within the Group and a debenture over these companies.

At 9:21am: [
LON:STM] STM Group PLC share price was 0p at 26.5p

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