New bank facility agreement
Redstone signs new Revolving Credit Facility
Monday 25, June 2012
Redstone plc (AIM: RED.L), a leading provider of network based end to end managed services, technology and infrastructure solutions, is pleased to announce the signing of a new £15.5 million Revolving Credit Facility (“RCF”) with Barclays Bank PLC on standard commercial terms. The granting of the new RCF marks the return to relationship banking following comprehensive restructuring of the Group which commenced in 2009 and completed in 2011, during which the Bank played a crucial supportive role.
The new RCF replaces the existing term loan and overdraft facility, and extends available committed facilities for 3 years to 1 July 2015. This is a net extension of 18 months on the old facility. In addition, the RCF provides up to £2.4m in additional funding on commercial terms.
The increase in facility will provide additional working capital headroom, rather than increase core borrowing. Redstone continues to reduce total borrowings, as outlined in the recent trading update, which will be confirmed in the preliminary results announcement in early July.
Tony Weaver, Chief Executive of Redstone commented:
“We are delighted to have increased and extended our facilities with Barclays. The new facility underlines the strength of our banking relationship, and provides substantive evidence of confidence in our prospects and strategy.”