Published on: May 28, 2021
New debt facility underpins growth strategy
Kape has secured new three-year bank facilities totalling U$220 million with six banks, three of which had provided its existing U$40 million term facility. When Kape made its transformational, earnings enhancing acquisition of Webselenese in early March this year, it entered into a U$120 million bridge loan facility, U$85 million of which went towards funding the cash element of the acquisition consideration. Management had committed to replacing this with new facilities from the banks as soon as practicable. The new term loan facility will be used to repay the drawn elements of the bridge loan and the current term facility. The announcement notes that the company’s net debt to Pro-forma EBITDA ratio is around 1.6x. With the new facility reducing Kape’s cost of funds as well as providing enhanced flexibility, the Group is now well-placed with a group of supportive financial institutions to continue its growth strategy – we expect to see the group extend further both its product range and its customer base over time.