REG - Vector Capital PLC - Loan facilities extended and broadened

Vector CapitalAnnouncement

12/06/2023 07:00

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RNS Number : 3036C  Vector Capital PLC  12 June 2023

12 June 2023

Vector Capital Plc

("Vector Capital", the "Company" or the "Group")

Loan facilities extended and broadened and Related Party Transaction

"A cautious, flexible approach to widen and deepen the loan book"

Vector Capital Plc (AIM: VCAP), a commercial lending group that offers secured
loans to property developers and investors in England & Wales, is pleased
to provide an update on the Group's loan facilities, including those provided
by Vector Holdings Limited ('Vector Holdings').

Extension of wholesale banking facilities

The Board is pleased to announce that the Company's wholesale bank debt
providers have increased debt facilities by £5.0 million, bringing the total
wholesale bank facilities available to the Group to £45.0 million.

Within these overall wholesale bank facilities, the Group now has the capacity
to drawdown £2.5 million toward loans secured by second charges, thereby
allowing the flexibility for cautious and selective expansion of the Group's
loan book into higher margin loan agreements.

Extension of loan facilities provided by Vector Holdings

On 29(th) December 2022, the terms of an inter-company debt agreement with
Vector Holdings for a £3 million loan (the 'Vector Holdings Liability'),
entered into on 12 November 2020, were extended. The key terms of the extended
debt agreement included:

 ·         Interest will be payable on the outstanding balance of the Vector Holdings
           Liability at a rate of 6.25 per cent. per annum accruing daily and payable
           quarterly on the last business day of March, June, September and December; and

 ·         The Vector Holdings Liability is unsecured and is repayable on 31 December
           2024.

Under the terms of a Relationship Agreement dated 18(th) December 2020, Vector
Holdings undertook not to demand repayment of the whole or any part of the
Vector Holdings Liability without the prior written consent of at least two
independent directors, except in the event of an insolvency.

At a Company board meeting on 9(th) June 2023, the Board of Vector Holdings
has agreed to increase the amount of the loan facility from £3 million to £4
million, with all other terms relating to the intercompany debt and the
Relationship Agreement remaining unchanged.

The revised terms of the loan provide the Company with access to very
competitively priced finance, significantly below the rate currently offered
by third party funders, to be employed to increase the loan book at higher
margins.

 Related Party Transaction

Vector Holdings is the parent company of the Group and holds a 75% interest in
the Company. Mr. Agam Jain, a director of Vector Capital, is a controlling
shareholder of Vector Holdings along with his immediate family. Accordingly,
the extension of the inter-company debt is deemed to be a related party
transaction pursuant to AIM Rule 13 of the AIM Rule for Companies.

The Company's Directors (excluding Mr. Agam Jain, who is directly related to
this transaction), having consulted with Vector Capital's Nominated Adviser,
WH Ireland Limited, consider the extended terms of the loan to be fair and
reasonable in so far as the Company's shareholders are concerned.

Agam Jain, CEO of Vector Capital, added: "We are very pleased to announce the
extension and broadening of our wholesale debt facilities and the extension of
competitively priced debt facility from Vector Holdings. These facilities,
combined with our resilient pipeline of new loan opportunities and the
strength of our loan management systems, provides a base from which to target
future growth as interest rates stabilise."

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

For further information please contact:

 Vector Capital plc                                                              c/o IFC Advisory

 Robin Stevens (Chairman)
 Agam Jain (CEO)

 WH Ireland                                                                      020 7220 1666
 Limited

 Hugh Morgan, Chris Hardie, Darshan Patel

 IFC Advisory                                                                    020 3934 6630
 Limited
 Graham Herring, Florence Chandler, Zach Cohen

About Vector Capital:

Vector Capital provides secured, business-to-business loans to SMEs based in
England and Wales. Loans are typically secured by a first legal charge against
real estate. The Company's customers typically borrow for general working
capital purposes, bridging ahead of refinancing, land development and property
acquisition. The loans provided by the Company are typically for renewable
12-month terms with fixed interest rates.

 

 

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