LONDON, December 14, 2017 /PRNewswire/ --
Debt funding package will provide SRT with a flexible source of secured debt financing for working capital and investment in new product development
LGB Corporate Finance has arranged a £10million secured loan note programme for AIM-quoted SRT Marine Systems PLC ("SRT"), one of the UK's leading providers of maritime tracking, management and surveillance technologies.
An initial issue of £2 million of secured loan notes was completed concurrent with the establishment of the programme. The first issue of loan notes have a three year term and pay interest at 8.0% per annum.
SRT supplies technologies, products and systems which provide maritime domain awareness (MDA). Its systems are used across a broad range of applications including maritime border control and security, fishery monitoring and management, infrastructure monitoring, search and rescue and environment monitoring.
Funds from the programme will help finance SRT's working capital requirements to support the growth of its maritime domain awareness ("MDA") business and partially finance its long-term investment in innovative product development, specifically the building of a satellite vessel monitoring programme, OCEAN-SCAN, which will provide long range tracking data to MDA system customers with the aim of further strengthening the Group's recurring revenue streams.
Secured loan note programmes geared towards the lower-mid market have been pioneered by LGB Corporate Finance to address a significant funding gap faced by UK SMEs that has not been filled by either bank debt or alternative sources of private capital.
Angus Grierson, Managing Director of LGB Corporate Finance said: "SRT is acknowledged as the market leader for its core AIS technologies which are fast becoming a global standard to supplement radar systems used in the maritime industry. The debt financing package will help SRT to fund its working capital and invest in product development, most notably the OCEAN-SCAN satellite programme which will further strengthen the Group's recurring revenue streams."
Simon Tucker, CEO of SRT Marine Systems PLC, commented: "As a fast growing international business, SRT Marine Systems PLC needed to have access to a non-dilutive, flexible source of working capital. The LGB loan note programme provided an ideal solution to this requirement. The team at LGB Corporate Finance conducted extensive due diligence work to deeply understand our business and quickly and efficiently put in place a £10 million secured loan note programme.
SOURCE LGB Corporate Finance