REG - Inspired Capital PLC - Additional Debt Facilities <Origin Href="QuoteRef">INSCI.L</Origin>

InspiredAnnouncement

29/10/2014 14:12

RNS Number : 0631V
Inspired Capital PLC
23 October 2014
23 October 2014
Inspired Capital plc
("Inspired" or the "Group")
Additional Debt Facilities
Inspired Capital plc, a challenger provider of customer-focused financial solutions to SMEs is pleased to announce an increase of its current debt facilities with Lloyds Banking Group plc ("Lloyds") from 34 million to 50 million. In addition the Group has agreed terms of a 3.5 million debt finance facility (the "Henderson Facility"), which has the potential to be extended further up to 7 million; from The Alphagen Volantis Fund Limited and The Alphagen Volantis Catalyst Fund Limited, two funds managed by Henderson Global Investors ("Henderson"). Henderson manages a number of funds which in aggregate is the Group's largest shareholder, with 26.6 per cent. of Inspired's issued share capital, excluding shares held in treasury. 
As highlighted in the recent interim results announcement, the Board of Inspired noted their intentions to both increase the levels of funding available and diversify the funding partners to support future growth, including government funding from the Department of Business Innovation and Skills.
The Lloyds Facility
The Group has recently agreed detailed heads of terms in respect of an increase of its current banking facility with Lloyds, from 34 million to 50 million (the "Lloyds Facility"). The extension to the Lloyds Facility is subject to the usual legals and final documentation.The Lloyds Facility will continue to be utilised to finance the majority of the Group's growing invoice discounting business.
The Henderson Facility
The Group's other internally financed products are also experiencing growth and as a result Inspired has also agreed on the terms of the Henderson Facility. The Henderson Facility is unsecured and will charge a rate of 0.7 per cent. per calendar month or part thereof, compounded, on any balances drawn down. The Group will be also be charged an arrangement fee of 3.5 per cent. on any balance drawn down from the Facility, as well as a 3.5 per cent fee on any balances repaid after 31 January 2015. The Henderson Facility will be repayable over a one year period or following an equity fundraising on AIM raising a minimum of 10 million net of fees. As a result of The Alphagen Volantis Fund Limited,managed by Henderson, and Jamie Brookebeing related partiesunder the AIM Rules for Companies, the directors excluding Jamie Brooke, having consulted with the Group's nominated adviser, consider the terms of the Henderson Facility to be fair and reasonable insofar as the Group's shareholders are concerned. 
Brian Cole, Chief Executive Officer of Inspired Capital plc, said: "Our recently released interim results demonstrated the strong offering Inspired provides with innovative, flexible financial services for SMEs. Since that date we have continued to see good uptake of our products and lending, further validating our stated strategy. There are a number of sources of funding available to Inspired and we are delighted to announce today progress with our plans to both increase the amount of funds available as well as the sources available to us."


For further information please contact:
Inspired Capital plc
Matt Cooper, Chairman
Brian Cole, Chief Executive Officer
David Blain, Chief Financial Officer
+44 (0) 7721 978 218
Altium (financial adviser and nominated adviser)
Paul Lines
Phil Adams
Adam Sivner
+44 (0) 845 505 4343
Panmure Gordon (broker)
Dominic Morley
+44 (0) 20 7886 2500
Newgate Threadneedle
John Coles
Fiona Conroy
Jasper Randall
+44 (0) 20 7653 9850
About Inspired Capital plc
Inspired Capital is building by organic growth and acquisition a new customer-friendly force in SME lending by deploying long term capital. There is an opportunity to grow considerably in an underserved sector, with SMEs traditionally finding credit difficult to access from the major clearing banks that often focus on the security and stability of retail and larger corporate lending.

This information is provided by RNS
The company news service from the London Stock Exchange
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