LONDON (ShareCast) - (Sharecast News) - First Derivatives said on Wednesday that it has agreed extended bank facilities totalling £130m to provide the group with flexibility in support of its growth plans.
The five-year facilities comprise a term loan of £65m and a revolving loan facility of £65m. They will refinance the company's existing borrowings and will 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 the revolving loan facility will have an interest rate for the first 12 months of LIBOR plus 2.75%. After this, an interest rate ratchet will apply from LIBOR plus 2.00% to LIBOR plus 3.00% depending on the level of debt relative to EBITDA.

This is an improvement on the current terms, where the interest rate payable varies from LIBOR plus 2.25% to LIBOR plus 3.50%.

The lead arranger for the bank facilities is Bank of Ireland with participation from Barclays, First Trust Bank and Silicon Valley Bank.

Chief executive Brian Conlon said: "I would like to thank Bank of Ireland, Barclays, First Trust Bank and Silicon Valley Bank for their support and for sharing our confidence in the group's future prospects. The extended bank facilities provide certainty regarding our funding requirements and the flexibility, should it be required, to act quickly to advance our growth plans."

At 1105 GMT, the shares were up 3.7% to 2,250p.

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