Wednesday 26 June 2019

First Derivatives agrees banking facilities totalling €148m

Brian Conlon, CEO of First Derivatives
Brian Conlon, CEO of First Derivatives
Ellie Donnelly

Ellie Donnelly

Global analytics software business First Derivatives has extended its bank facilities of £130m (€148m).

The facilities comprise a term loan of £65m and a revolving loan facility of £65m, and will provide the group with flexibility to support its growth plans, the Newry-based company said in a statement today.

The five-year facilities will refinance the group's existing borrowings and will be partly used to finance the acquisition of the minority shareholding in Kx Systems, due to be made in June this year.

First Derivatives currently has a controlling share of Kx Systems.

The term loan and the revolving loan facility will have an interest rate for the first 12 months of LIBOR plus 2.75pc. Following this, an interest rate ratchet will apply from LIBOR plus 2pc to LIBOR plus 3pc depending on the level of debt relative to earnings.

This represents an improvement on current terms where the interest rate payable varies from LIBOR plus 2.25pc to LIBOR plus 3.5pc.

Brian Conlon, CEO of First Derivatives, said: "The extended bank facilities provide certainty regarding our funding requirements and the flexibility, should it be required, to act quickly to advance our growth plans."

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