Water Intelligence PLC $17 Million Expansion of Credit Facilities (2902H)
05 Avril 2022 - 8:01AM
UK Regulatory
TIDMWATR
RNS Number : 2902H
Water Intelligence PLC
05 April 2022
Water Intelligence plc
$17 Million Expansion of Credit Facilities
Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or
"Group"), a leading multinational provider of precision,
minimally-invasive, leak detection and remediation solutions for
both potable and non-potable water is pleased to accelerate its
multi-year growth plan with an expansion of its credit facilities
to include an additional $15 million for further acquisitions of
its American Leak Detection franchises ("ALOC") and a two-year
extension of its $2 million line for working capital ("WC")
(together, "New Facilities").
The New Facilities grow the Group's long-standing commercial
banking relationship with People's United Bank ("People's").
Today's transaction also launches a broader relationship with
People's new parent M&T Bank Corp - a leading bank in the
United States.
Capital Formation
The $17 million available from the New Facilities complements
the Group's GBP12.5 million (approximately $17 million) raised from
an equity placement during Q4 2021. Such capital formation combined
with the Group's organic growth in EBITDA, provides the Group with
a strong base of resources from which to accelerate its growth
trajectory.
Transaction
Today's financing will facilitate continued accretive growth for
all shareholders because the ALOC provides $15 million of
non-dilutive capital to reacquire a portion of the approximately
$100 million of profitable gross sales currently being executed by
franchisees within the Group's American Leak Detection
subsidiary.
As part of the facility, the Group has entered into a swap
arrangement that maintains a fixed interest rate of approximately
5.5% on amounts drawn under the ALOC facility. The amortization
term on monthly principal and interest repayment of monies drawn
from the ALOC is five years. Separately, the extension of the
Group's working capital credit facility for an additional two years
provides the Group financing flexibility to expand its
business-to-business channels. The WC will bear interest at a
variable interest rate based on 30-day SOFR. The New Facilities are
in addition to the Group's current bank debt, which at 31 December
2021 totalled $8.5 million. The covenants for the New Facilities
remain the same as disclosed on 6 December 2019 and 10 May 2019 for
previous bank debt, including with both Dr. Patrick DeSouza and
PlainSight Systems, Inc. remaining as guarantors.
Dr. Patrick DeSouza, Executive Chairman of Water Intelligence,
commented: "We are pleased to deliver for shareholders an optimal
corporate finance plan that blends debt and equity to reinforce
accelerated growth at a lower cost of capital. The expansion of our
credit facilities and launch of a relationship with M&T Bank,
which has substantial additional capabilities, are very exciting.
Today's bank transaction complements Q4's expansion of our investor
base with first-tier institutional funds. We look forward to
continuing to deliver strong results despite the volatility that
currently characterizes the wider marketplace. For the Group
itself, market demand for water infrastructure solutions continues
to be strong."
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
Enquiries :
Water Intelligence plc
Patrick DeSouza, Executive Chairman Tel: +1 203 654 5426
RBC Capital Markets - Joint Broker Tel: +44 (0)20 7653 4000
Jill Li
Elizabeth Evans
WH Ireland Limited - NOMAD & Joint Tel: +44 (0)20 7220 1666
Broker
Chris Hardie
Ben Good
Dowgate Capital Ltd - Joint Broker Tel: +44 (0)20 3903 7715
Stephen Norcross
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END
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