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Birmingham Post
Birmingham Post
Business
Jon Robinson

War chest of £15m secured by professional services group K3 Capital

Bolton-headquartered professional services group K3 Capital has secured a war chest worth £15m.

The group added that the deal was its first debt facility as a plc.

In a statement issued to the London Stock Exchange, K3 Capital said it had secured total available debt facilities of £15m through a new committed revolving credit facility of £10m with an approved but uncommitted accordion facility of up to £5m.

The facilities, provided by HSBC Bank plc, are committed for a three-year initial term and are provided on "competitive terms".

Alongside the company's existing cash reserves and strong ongoing cash generation, the facilities will be used to support its growth ambitions and its declared intention to acquire complementary professional services businesses.

K3 was advised by finnCap Debt Advisory.

John Rigby, K3's CEO, said: "To date, the group has been supported by its shareholders and its own cash generation in delivering the board's vision.

"The new debt facility represents an important evolution of our capital structure, creating more flexible funding options as we consider further strategic acquisitions, in line with our ongoing growth strategy."

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