Elixirr International Secures £45m Credit Facility from NatWest to Fuel Growth Strategy

Highlights:

• Strategic Funding: £45m revolving credit facility from NatWest supports both organic growth and acquisitions.
• Flexible Terms: Facility available in sterling and dollars with flexible interest rates based on leverage.
• Equity Protection: Credit facility allows growth without significant equity dilution, enhancing financial flexibility.

Global consultancy firm Elixirr International (LSE:ELIX) announced on Monday that it has successfully secured a £45 million revolving credit facility from NatWest. The funding is aimed at supporting the company’s ongoing growth strategy, including mergers and acquisitions, while minimizing equity dilution. Elixirr, which is listed on the AIM market, explained that the facility offers significant financial flexibility by allowing borrowing in multiple currencies, including sterling and US dollars. This flexibility is crucial for the firm’s plans, which involve both organic growth and strategic acquisitions.

The new facility carries an interest margin ranging from 1.95% to 2.60%, depending on leverage. For sterling loans, the margin is set over the Sterling Overnight Index Average (SONIA), while for dollar-denominated loans, it is based on the Secured Overnight Financing Rate (SOFR). In addition to the interest rate, a commitment fee of 35% of the applicable margin will be charged on any undrawn portion of the facility. This structure provides Elixirr with cost-effective access to capital, ensuring the company can tap into additional funding when necessary without immediately drawing on the entire facility.

The credit facility has a four-year term, with an option for a one-year extension if mutually agreed by both Elixirr and NatWest. It also includes standard covenants related to leverage and interest coverage, ensuring that the company maintains financial discipline as it grows.

Graham Busby, the chief financial officer of Elixirr International, expressed his satisfaction with the terms of the facility, emphasizing its importance in supporting the company’s growth without significant dilution of shareholder equity. "We are pleased to have put in place this revolving credit facility with NatWest, which, alongside the group’s strong cash generation, significantly enhances our ability to deploy capital for future acquisitions while effectively managing equity dilution," Busby said.

The credit facility will enable Elixirr to accelerate its expansion plans, both through organic means and through acquisitions, ensuring that the company remains agile in pursuing strategic opportunities. The flexibility of borrowing in multiple currencies also supports Elixirr’s global operations, making it easier to fund initiatives in different regions.

Following the announcement, shares in Elixirr International saw a modest rise of 0.72%, trading at 700p by 1217 BST.