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 Advisors II Limited. This development follows the announcement on October 30, 2024 of an agreement on the terms of the proposed cash acquisition.
The senior facility agreement, replacing the interim facilities, was agreed with lenders including LGT Private Debt (UK) Limited. It consists of a £57.5 million term loan and a £27.5 million multi-currency investment and acquisition term loan. The agreement provides for a repayment period of seven years from the first use date, proposed to be January 27, 2025.
The acquisition process progressed significantly after Eckoh shareholders approved the plan of arrangement at a court meeting and a general meeting, both held on January 6, 2025. The plan sanctioned by the court under Part 26 of the Corporations Act 2006 is expected to be reviewed at the Sanctions Hearing scheduled for January 16, 2025, with the regime expected to come into force on or about the 20 January 2025.
The key terms of the senior credit agreement include a starting interest rate margin of 5.75% per annum on the loans, subject to adjustments based on the net leverage ratio. The agreement also contains customary representations, warranties and covenants, as well as default provisions typical of such financial arrangements.
Successful implementation of the acquisition is subject to the satisfaction or waiver of the remaining conditions outlined in the project document. Once effective, a new announcement will be made 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 marks a significant milestone for both entities, with the process being closely monitored by legal advisors Cleary Gottlieb Steen & Hamilton LLP for Bidco and Bridgepoint, and Mills & Reeve LLP for Eckoh.
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