The Scottish Salmon Company PLC - Refinancing of Bank Facilities

The Scottish Salmon Company PLC is pleased to announce that its wholly owned subsidiary, The Scottish Salmon Company Limited, has reached  an agreement to refinance its bank facilities with a secured GBP 50m multicurrency facility with its existing lenders, DNB.

The facility is a combination of term loan; revolving credit facility and an overdraft. In addition to providing additional funding to support the Company's objective of moderated growth, it also provides increased flexibility reflecting the variability in working capital requirements.

The principal financial covenants are an equity ratio of no less than 35% and a gearing ratio of Net Interest Bearing Debt to trailing EBITDA not to exceed 3.5:1 from quarter 4 2016. For the period up to and including quarter 3 2016 a trailing EBITDA covenant is in place in lieu of the gearing ratio.

The refinancing package consists of a Term Loan of £20m, amortising over a 10 year period, a Revolving Credit Facility of £20m and an Overdraft Facility of £10m, with variable terms.