Six banks committing an equal share of £33.3 million each as unified comms provider ramps up its acquisition plans
Daisy Group has signed a new three-year banking agreement worth £200 million which it said increases the flexibility and capacity to continue with its acquisition strategy.
The deal sees £50 million made available as a short-term loan and a £150 million revolving credit facility for the Group. These combined facilities replace its existing funding package of £140 million.
The facilities have been arranged with six banks comprising existing syndicate members Barclays Bank, HSBC Bank, Lloyds Banking Group, The Royal Bank of Scotland and Yorkshire Bank. They are now joined by ING Bank. Each has committed an equal amount of funding of £33.3 million.
Daisy Group chief financial officer Steve Smith (pictured) said: “We are delighted with the appetite shown by our banking partners to continue to support our strategy and are pleased to welcome ING into our banking arrangement. In 2010 we put together facilities with three banks, each committing £25 million, and subsequently expanded the club to five banks with an average commitment of £28 million each.
“The terms of these facilities reflect the banks’ confidence in the Group’s continuing financial progress and strategy. The new and enlarged facilities will enable us, in line with our stated strategy, to continue to consolidate the fragmented reseller market place where we see a clear path to generate shareholder value.”