REG - Public Policy Hldg - New Credit Facility

Public Policy HoldingAnnouncement

01/03/2023 07:01

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RNS Number : 4076R  Public Policy Holding Company, Inc.  01 March 2023

 1 March 2023

 

Public Policy Holding Company, Inc.

 

("PPHC" or the "Group")

 

New Credit Facility

 

$17m Credit Facility will partially fund an immediately accretive acquisition
and facilitate PPHC's growth strategy

 

Public Policy Holding Company (AIM: PPHC), the US-based government relations
and public affairs group providing clients with a fully integrated and
comprehensive range of services including government and public relations,
research and digital campaigns, has entered into a $17m credit facility with
Bank of America, N.A. (the "Credit Facility").

 

Key Terms:

·    Facility 1: $3m Senior Secured Line of Credit. The interest rate
payable on this facility is the Bloomberg Short-Term Bank Yield Index plus 225
basis points.

·    Facility 2: $14m Senior Secured Term Loan. The interest rate payable
on this facility is the Bloomberg Short-Term Bank Yield Index plus 225 basis
points.

·    The Credit Facility will mature on 31 January 2026.

 

Prior to today's announcement, PPHC carried substantially no debt. The Group
intends to maintain a prudent leverage ratio as it executes on a dual-track
strategy of organic growth and earnings accretive M&A.

 

The Credit Facility will be partially deployed alongside balance sheet cash to
fund the cash element of a substantially and immediately earnings-enhancing
acquisition. The Board of PPHC recognises the importance of its ability to
utilise, depending on market conditions, both the equity and debt markets to
fund its growth strategy. Maintaining flexibility facilitates the Group's
wider capital allocation policy, which includes the payment of dividends, in a
de-risked manner.

 

Stewart Hall, CEO of PPHC, commented:

"We operate in a highly fragmented market and believe effective consolidation
will generate significant and long-term returns. Therefore, the pursuit of
acquisition opportunities is central to the inorganic element of our overall
growth strategy. In funding this strategy, we will not compromise our existing
capital allocation policy and it is important that we can sensibly utilise,
depending on market conditions, both the equity and debt markets. We are a
cash generative business that maintains a strong balance sheet, and by
electing to enter a Credit Facility we can enhance shareholder value by
lowering our cost of capital and enabling us to capitalise on existing and
future acquisition opportunities."

 

 Enquiries

 Public Policy Holding Company Inc.                                 +1 (202) 688 0020


 Stewart Hall, CEO

 Bill Chess, CFO

 Thomas Gensemer, Chief Strategy Officer & Investor Relations

 Roel Smits, Deputy CFO

 Stifel (Nominated Adviser & Broker)                                +44 (0) 20 7710 7600

 Fred Walsh, Tom Marsh (Investment Banking)

 Jan-Erik Back, George Moore-Gwyn (Capital Solutions Group)
 Buchanan Communications (Media Enquiries)                          +44 (0) 20 7466 5000

                                                                  pphc@buchanan.uk.com (mailto:pphc@buchanan.uk.com)
 Chris Lane, Toto Berger

 

About PPHC

Incorporated in 2014, PPHC is a US-based government relations and public
affairs group providing clients with a fully integrated and comprehensive
range of services including government and public relations, research and
digital campaigns. Retained by over two-thirds of its +700 clients, including
corporates, trade associations and non-governmental organisations, the Group
is active in all major sectors of the U.S. economy, including healthcare and
pharmaceuticals, financial services, energy, technology, telecoms and
transportation. PPHC's services support clients to enhance and defend their
reputations, advance policy goals, manage regulatory risk, and engage with US
federal and state-level policy makers, stakeholders, media and the public.

 

PPHC operates a holding company structure and currently has six operating
entities comprising Crossroads Strategies, Forbes Tate Partners, Seven Letter,
O'Neill & Associates and Alpine Group Partners, and KP Public Affairs.
Operating in the strategic communications market, the Group has a strong track
record of organic and acquisitive growth, the latter focused on enhancing its
capabilities and to establish new verticals, either within new geographies or
new related offerings.

 

For more information, see www.pphcompany.com (http://www.pphcompany.com/) .

 

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