PTSG secures increased £50m banking facilities

25 March 2019

PTSG secures increased £50m banking facilities

Niche specialist services provider Premier Technical Services Group has agreed increased £50m banking facilities with HSBC UK Bank which will be used to help drive organic growth and acquisitions.

The package includes a revolving credit facility (RCF) and a term loan.

The RCF is a £40m four-year package which expires in March 2023 with an option to extend by a further year to March 2024.  It comprises a committed £30m day one facility together with a £10m accordion option whereby the initial £30m RCF may be increased by up to £10m subject to HSBC's discretion. 

A committed £10m has also been secured with a four-year facility which expires in March 2023 with an option to extend by a further year and is subject to annual repayments of £1m.

These facilities replace the group's existing £12m RCF which was due to expire in September 2020, £13m on demand loan and £10m overdraft facility.

"The group's turnover and underlying levels of EBITDA have more than trebled since the original facilities were agreed in 2015," said PTSG chairman John Foley.  "These enlarged facilities, at better margins, provide us with further headroom to allow PTSG to continue to create ongoing shareholder value through organic growth and carefully selected acquisitions."

"We are delighted to continue working with HSBC, who have been the group's bankers since our formation in 2007. The new facilities reflect the bank's ongoing confidence in the group's strategic prospects and credit quality."