LONDON (ShareCast) - (Sharecast News) - Self-care products specialist Venture Life Group announced the renewal of its revolving credit facility with Santander UK and HSBC Innovation Bank on Friday.

The AIM-traded firm said the facility gave it borrowing capabilities of up to £30m, restricted to a net amount not exceeding 2.5x its consolidated EBITDA over the last 12-month period, including the trailing EBITDA from any acquisitions.

It said that limit would temporarily increase to 2.75x in the three months immediately following an acquisition.

Additionally, the group said it had access to an extra £20m facility, subject to specific conditions, under the same terms as the revolving credit facility.

With an initial term of three years and a further one-year extension option, the board said the facility would entail an interest rate ranging from 2% to 2.85%.

The group's existing leverage position above the sterling would determine that interest overnight index average (SONIA) interest rate and Euro interbank offered rate (EURIBOR) benchmark.

Venture Life said it could use the funds drawn under the facility for acquisitions, working capital, or other business purposes.

The board said it had used the opportunity to optimise the group's corporate financing policies, considering its medium and long-term needs.

"Santander UK and HSBC Innovation Bank have been supportive partners to Venture Life Group over the past three years, and we are delighted to complete our refinancing with them," said chief financial officer Daniel Wells.

"The teams from across both lenders have been excellent to work with, and understand our business and the consumer healthcare sector well.

"We look forward to working with them in future as we continue to grow and scale our business."

At 1031 BST, shares in Venture Life Group were up 4.58% at 40p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE