Castleford's PTSG secures £10m financing deal with HSBC

Premier Technical Services Group PLC, the Castleford-based niche specialist services provider, has extended its banking facilities with HSBC.

The Revolving Credit Facility has been increased from £7m to £10m with the expiry date remaining unchanged at September 2020. The overdraft facility has also been increased, from £2.5m to £4m.

Both new facilities are provided at the same interest rate and covenant tests as under the previous facility.

Drawn amounts under the RCF attract a variable margin over LIBOR, based on the Group’s Net Debt/EBITDA ratio. Undrawn amounts attract a commitment fee.

John Foley, chairman of PTSG, said: “The increase in our banking facilities reflects the increased scale and profitability of the Group.

“PTSG’s core borrowings are its net cash or overdraft position plus drawings under the RCF, which at 31 December 2015 amounted in total to £6.3m.

“Deferred consideration and loan notes issued in relation to acquisitions are in the main a function of profitability within the acquired businesses and can usually be settled in cash or in shares at PTSG’s option.

“At this stage in the Group’s development, the Board is comfortable with core borrowings of up to 1.75 times adjusted EBITDA and our increased facilities provide substantial headroom to continue to grow both organically and through carefully selected acquisitions.

“We are delighted to continue working with HSBC who have been the Group’s bankers since its formation in 2007.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →