Software specialist agrees new $70m bank facility with club of banks

Software group Kape, a digital security and privacy software business, has entered into an agreement with Bank of Ireland, Barclays Bank and Citi Commercial Bank, to provide senior secured term and revolving credit facilities of up to $70m.

The facility is a club of banks with Bank of Ireland acting as the agent bank replacing a short-term debt facility for the Isle of Man-registered business.

The new debt facilities comprise a $40m term facility, a $10m revolving credit facility and a $20m uncommitted acquisition facility.

The new debt facilities have a three-year term with an option to extend by up to an additional two years, 50% of the term facility will be amortised on a quarterly basis across 36 months.

The new debt facilities carry an interest rate of LIBOR plus an opening margin of two per cent per annum reducing the debt cost from a LIBOR plus five per cent on the short-term debt facility.

On November 19, 2019, the company agreed a short-term debt facility to finance its acquisition of LTMI Holdings from Unikmind Holdings Limited, with a view to replacing the term loan with a long-term facility from a commercial bank.

The term facility will now be used to repay the $40m previously drawn from the term loan.

Moran Laufer, Kape chief financial officer, said: “We are pleased to have secured this debt facility with Citi, Barclays and Bank of Ireland, with the support of finnCap, which not only supports our recent acquisition but further strengthens our balance sheet providing additional growth capital.

“This is a strong signal of support for Kape’s long-term success driven by its SaaS business model.

“We look forward to working alongside the banks as we seek to create further value for all our key stakeholders as we expand our market reach.”

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