Q Advisors Represents OpSec Security Group in its £19 Million Debt Financing
DENVER, CO, April 22, 2008 - OpSec Security Group plc (London AIM: OSG), the supplier of anti-counterfeiting technologies and services is pleased to announce that it has entered into a term loan and revolving credit facility of up to £19,000,000 with the Royal Bank of Scotland plc ("RBS").
The facility is split into three separate tranches designated Facility A, Facility B and Facility C.
Facility A is a £12,500,000 multi-currency term loan, bearing an interest rate which is the sum of three month LIBOR, a margin of 1.5% (subject to a margin ratchet of 25 basis points) and the mandatory costs rate calculated by RBS. Facility A has a term of five years with a quarterly repayment profile commencing on 31st March 2009 and amortising to a £3,000,000 bullet repayment on 31st March 2013. This facility will be used to refinance the Company’s acquisition of Light Impressions International Ltd. announced on 2nd April 2008 and fund other planned acquisitions.
Facility B is a £2,000,000 multi-currency revolving credit facility, bearing the same interest rate as Facility A. Facility B has a five-year term with each revolving loan under the facility being repayable on the last day of its quarterly interest period. All outstanding Facility B loans must be repaid in full (together with accrued interest in respect of such loans) on the fifth anniversary of first drawdown of Facility B by OpSec. This facility will be used to fund the Company’s working capital requirements.
Facility C is a £4,500,000 multi-currency revolving credit facility, bearing the same interest rate as Facility A. Facility C has a term of five years with each revolving loan under the facility being repayable on the last date of its quarterly interest period. On or prior to the third anniversary of the first drawdown of Facility C by OpSec, it must agree to an amortisation profile with RBS specifying dates upon which the Facility C commitment will be permanently reduced by specified amounts. This facility will be used to repay the Company’s current borrowings with Bank of America and to finance its capital expenditure plans.
Commenting on the financing, Mark Turnage, Chief Executive Officer, said:
“We are pleased to announce these new financing arrangements which will provide capital for the next phase of the Company’s development. We believe the markets for our anti-counterfeiting products continue to expand and that there are opportunities to enhance OpSec’s position in these markets. This new financing will allow us to continue to grow the business by investing in the Company’s
operations and make further progress with our targeted acquisitions.
Q Advisors LLC acted as our exclusive placement agent and financial advisor. Q Advisors LLC was instrumental in helping us achieve a favourable debt financing in today’s challenging and volatile debt capital market conditions.”
OpSec Security Group
Is a pre-eminent provider of anti-counterfeiting technologies and services to over 100 governments and corporations worldwide. OpSec's products and services allow its corporate clients to authenticate and to track products from counterfeiting and diversion in both the physical and virtual worlds. Governments use OpSec technologies to guard against counterfeiting of currency, tax stamps, passports, drivers' licenses, licenses, and other government documents.
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