LONDON (ShareCast) - (Sharecast News) - Cloud computing company Iomart has agreed a refinancing, it announced on Friday, replacing its single bank revolving credit facility of £80m that was due to mature on 30 September 2022 with a new £100m revolving credit facility.
The AIM-traded firm said the facility was being provided by a new four-bank group consisting of HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank.

It said the new facility had an initial maturity date of 30 June 2025 with a 12-month extension option, and benefitted from a £50m accordion facility in addition to the £100m committed facility.

The facility had a borrowing cost at the company's current leverage levels of 180 basis points over SONIA, compared to 150 basis points over LIBOR on the prior facility.

An arrangement fee would be payable upfront, in addition to a commitment fee on the undrawn portion of the new facility on equivalent terms to the previous facility.

The company said the new revolving credit facility and the accordion if exercised would provide it with additional liquidity for working capital purposes, and to fund investments in accordance with its five-year strategic plan.

"We are delighted to have secured an increased and more flexible arrangement through a diversified bank club," said chief financial officer Scott Cunningham.

"Our four new banks, HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank, are very supportive of our refreshed strategy and clear growth plans, underpinned by the existing strong and predictable financial model, with high recurring revenue and good cash generation."

At 1200 GMT, shares in Iomart Group were down 1.06% at 149.4p.

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