SigmaRoc PLC (LON:SRC) said it has secured a new syndicated senior credit facility of up to £125mln with Santander UK and several other major UK and European banks that will provide it with “further capacity” to support its ongoing buy-and-build strategy.
The AIM-listed construction materials group said the new facility is comprised of an £85mln committed term facility and a £40mln accordion option for a term of five years with an interest cost of a 2.5% margin over the LIBOR rate at two times net debt to underlying earnings (EBITDA).
READ: SigmaRoc raises funds to accelerate investments, trading ahead of expectations
SigmaRoc said the new facility and the £12.4mln raised in early December has placed it in a “solid position” to continue its strategy and take advantage of “multiple near-term opportunities”. The company also reiterated its target to remain at a two times adjusted leverage ratio with an “overall downward trend”.
“I would like to thank Santander UK, who have supported our business and our growth for many years and took the lead on this expanded facility in the role as Mandated Lead Arranger”, SigmaRoc chief executive Max Vermorken said in a statement.
“The group has benefitted from their pragmatic approach and speed of execution. I am pleased we will be entering into 2021 with the right facilities in place, backed by high quality banks in the UK and Europe, to support the group in its development and further growth”, the CEO added.
The shares jumped 3.5% to 60p in early trading on Tuesday.
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