- Science Group
- 19 March 2025 11:07:21
Source: Sharecast
The AIM-traded company also announced that it had acquired a significant stake in Ricardo, becoming its second-largest shareholder.
It said the new term loans, totaling £12m, were each secured against its freehold properties in Harston, near Cambridge, and Epsom, Surrey.
The loans, which replaced the 2016 facility, had a 10-year term expiring in March 2035 with an interest margin of 2.6%.
Interest rate swaps fully hedged the loans, resulting in a fixed effective interest rate of about 7.3%.
The early repayment of the previous loan would generate a one-off benefit of around £0.6m.
Science Group said it had also secured a new revolving credit facility of £30m, expiring in March 2030, with an additional £10m accordion facility.
The facility carried a significantly reduced margin of 1.95%, compared with 3.3% on the previous facility.
It was currently undrawn, with operating covenants limiting net leverage to 3.0 times EBITDA and requiring interest cover of at least 4.0 times EBITDA.
In addition to refinancing, Science Group said it had built a strategic investment in Ricardo, acquiring 10.04 million shares, representing a 16.13% stake.
The shares were purchased at an average price of 231p, with most acquired near 15-year lows.
Ricardo’s closing share price on 18 March was 254p, reflecting a well-timed capital allocation.
Science Group had not disclosed whether it intended to increase its holding further.
As of 14 March, after adjusting for the Ricardo investment, Science Group said it retained gross cash of about £25.8m and net funds of £14.1m.
The company said its strengthened balance sheet and new debt facilities provided ample capital to execute its strategic plans while continuing its share buyback programme.
At 1100 GMT, shares in Science Group were down 1.7% at 405p.
Reporting by Josh White for Sharecast.com.