Member Article

Leeds-based bank team provide £80 million funding to support telecoms firm's IPO

Lloyds Bank’s Leeds-based strategic finance team, alongside Barclays and RBS, provided an £80m funding package to Manx Telecom to support the telecommunications provider’s Initial Public Offering.

The funding provided includes a term loan of £70m to repay outstanding senior debt and loan notes, and a £10m revolving credit facility to provide Manx Telecom with additional funding to pursue new growth opportunities.

Manx Telecom’s listing on the Alternative Investment Market (AIM) saw the exit of Private Equity shareholders HG Capital and CPS Partners after raising £156m.

This funding raised will support the company’s plans to roll out off-Island expansion and 4G services across the Isle of Man later this year.

Established in 1987, Manx Telecom provides fixed line, broadband, mobile and data centre services to businesses, consumers and public sector organisations on the Island.

The company has more than 300 employees and market capitalisation of £160m following its AIM listing.

Gary Lamb, finance director of Manx Telecom, said “The IPO is a new and exciting chapter in the company’s history.

“The capital raised via the listing ensures that we can continue to make significant investment in the Island’s telecommunications infrastructure, delivering tangible benefits for both consumers and businesses.

“Lloyds Bank was a supportive partner throughout the IPO process and helped provide a finance package that will help us to achieve our future plans.”

Kris Keen, associate director, strategic finance, said: “Manx Telecom is an established business that is well positioned to capitalise on the demand for 4G, faster broadband and data hosing.

“The business plays key role in the Island’s economy by providing businesses and consumers with a first class communications service. Lloyds Bank is proud to have supported the business in a successful IPO.”

This was posted in Bdaily's Members' News section by Clare Burnett .