STM GROUP PLC — Capital/Financing Update 2020

Nov 6, 2020

National Storage Mechanism | Additional information

RNS Number : 4498E

STM Group PLC

06 November 2020

STM Group Plc

("STM" or "the Company" or "the Group")

Signing of credit facility to fund

M&A growth strategy

STM Group Plc (AIM:STM), the cross-border financial services provider, is pleased to announce that it has this week signed a credit facility with Royal Bank of Scotland (International) Limited ("RBSI"), as first notified on 13 August 2020 when credit terms were agreed in principle by the bank, to support its M&A growth strategy.  

The credit facility is for £5.5m (the "Facility"), is to be used purely for acquisitions, and is expected to be drawn down in line with acquisition milestones by 22 April 2022 at the latest.

The Facility has a 5 year term with capital repayments structured over ten years and a final instalment to settle the outstanding balance in full at the end of the 5 years. Interest on the drawn funds will be charged at 3.5% per annum over the Sterling Relevant Reference Rate, with the undrawn balance charged at an interest rate of 1.75% per annum over the Sterling Relevant Reference Rate.  

The Facility is subject to customary cashflow to debt service liability ratio and EBITDA to debt service liability ratio covenants tested quarterly and is secured by a capital guarantee provided by a number of non-regulated holding subsidiary companies within the Group and a debenture over these companies.

For further information, please contact:

STM Group Plc	www.stmgroupplc.com
Alan Kentish, Chief Executive Officer	Tel: Via Walbrook
Therese Neish, Chief Financial Officer
finnCap	www.finncap.com
Matt Goode / Emily Watts - Corporate Finance Tim Redfern / Richard Chambers - ECM	Tel: +44 (0) 20 7220 0500
Walbrook	www.walbrookpr.com
Tom Cooper / Paul Vann	Tel: +44 (0) 20 7933 8780
	Mob: +44 (0) 797 122 1972
	tom.cooper@walbrookpr.com

Notes to editors:

STM is a multi-jurisdictional financial services group which is listed on the AIM Market of the London Stock Exchange. The Group specialises in the administration of client assets in relation to retirement, estate and succession planning and wealth structuring.

Today, the Group has operations in the UK, Gibraltar, Malta, Jersey and Spain.  STM has developed a range of pension products for UK nationals and internationally domiciled clients and has two Gibraltar Life Assurance Companies which provide life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.

STM's growth strategy is focussed on both organic initiatives and strategic acquisitions.

Further information on STM Group can be found at www.stmgroupplc.com

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