Software Circle PLC on Monday said it had entered into new loan facilities of up to £16.7 million with Shawbrook Bank Ltd to support its bond repayment and acquisition strategy.
The Manchester, England-based acquirer of market software businesses will use £6.7 million to repay outstanding bonds from the company’s perpetual bond facility set up in July 2020, around November 25.
The remaining £10 million is to be used by May 22 2027 for the company’s acquisition strategy.
Half of the funds is repayable in 60 instalments, starting on December 22. 25% of the funds drawn will be repayable after the utilisation period in 30 instalments, starting June 22 2027. Any outstanding amount is repayable in one instalment on November 22 2029.
Chief Executive Officer Gavin Cockerill said: ‘Our [mergers and acquisitions] pipeline remains healthy. We intend to deploy our currently available capital before utilising the debt facility which further extends our financial runway, enabling us to pursue additional M&A opportunities. We are committed to maintaining our disciplined approach to acquisitions, ensuring that each addition is aligned with our culture, enhances our overall value proposition, supports our long-term objectives including our primary financial goal of maximising operating cash flow per share.’
Shares in Software Circle were down 1.7% to 22.60 pence in London on Monday afternoon.
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