LONDON – Eckoh PLC, a global provider of secure payment products and customer contact solutions, has entered into a senior facilities agreement to finance its acquisition by Eagle UK Bidco Limited (“Bidco”), an indirect wholly owned subsidiary of funds managed by Bridgepoint Advisers II Limited. This development follows the announcement of an agreement on the terms of the recommended cash acquisition on 30 October 2024.
The senior loan agreement, which replaces the interim loans, was entered into with lenders including LGT Private Debt (UK) Limited. It consists of a £57.5 million term loan and a £27.5 million multi-currency equity and acquisition loan. The agreement specified a seven-year repayment period from the first date of use, and it was proposed to be January 27, 2025.
The acquisition process advanced significantly after Eckoh shareholders approved the scheme of arrangement at a court and general meeting, both held on 6 January 2025. The court-approved scheme under Part 26 of the Companies Act 2006 is due to be reviewed at a Sanctions Hearing scheduled for 16 January 2025, with the expectation that the scheme will come into effect on or about 20 January, in 2025
Key terms of the senior credit agreement include an initial interest margin of 5.75% per annum on the borrowings, subject to adjustments based on the net leverage ratio. The agreement also includes customary representations, warranties and covenants, along with default provisions typical of such financial arrangements.
The successful implementation of the acquisition is subject to the satisfaction or waiver of the remaining conditions set out in the scheme document. Once effective, a further announcement will be sent to shareholders.
This financial update is based on a press release and provides Eckoh shareholders and the investment community with the latest details on Bidco’s financing of the acquisition. The acquisition is a significant step for both entities, and the process is closely monitored by legal advisors Cleary Gottlieb Steen & Hamilton LLP for Bidco and Bridgepoint and Mills & Reeve LLP for Eckoh.
This article was generated with the help of AI and reviewed by an editor. See our T&C for more information.
