# Anexo Group Increase in Debt Facilities to Fund Growth

- Link: https://www.directorstalkinterviews.com/anexo-group-increase-in-debt-facilities-to-fund-growth/4121025746
- Published: 2021-09-30T08:11:50+01:00
- Author: Giles

**Anexo Group plc** ([LON: ANX](https://www.directorstalkinterviews.com/company/anexo-group-plc/anx.l)),
the specialist integrated credit hire and legal services provider, has announced
increased debt facilities following discussions with its two major lenders to fund
growth in its credit hire and legal services divisions. In total these facilities
will provide additional financing of £16.0 million across the year.

**Credit Hire Division**

Direct Accident Management Limited (DAMS) and Professional and Legal Services Limited(
PALS), both subsidiaries of EDGE, the Group’s credit hire division, use an invoice
discounting facility provided by Secure Trust Bank Plc (Secure Trust) which is secured
on the respective trade receivables of each company. The Board is pleased to announce
that the funding under these agreements is being increased immediately from £18.5
million to £25.0 million, split between £17.0 million as a Credit Hire facility,
£6.5 million as a Credit Repair facility and £1.5 million to support growth within
PALS. This initial increase will be followed by three quarterly increases of £2.5
million, taking the overall facility to £32.5 million. The overall facility limit
will be £36.5 million. The minimum period for the agreement has been extended to
31 December 2022. Interest on the Credit Hire and Credit Repair facilities is charged
at 3.75% above base rate; interest on the PALS facility is charged at 2.75% above
base rate.

In July 2020 Direct Accident Management Limited secured a £5.0 million loan facility
from Secure Trust Bank Plc, under the Government’s CLBILS scheme. The loan was secured
on a repayment basis over the three year period, with a three month capital repayment
holiday, £2.0 million of which was to be paid as a final instalment. Interest is
payable at the CLBIL Scheme Interest Rate. The facility is provided alongside the
newly agreed facilities, with the final instalment now being amortised over the 
remaining life of the facility.

**Legal Services Division**

Bond Turner Limited, the Group’s legal services division, operates with a revolving
credit facility provided by HSBC Bank Plc (HSBC). The Group has received approval
from HSBC for an immediate increase in this facility from £8.0 million to £10.0 
million, committed for a period of three years with interest payable at SONIA rates.
The Group expects to finalise the arrangement shortly.

In July 2020 Anexo Group Plc secured a loan of £2.1m from a specialist litigation
funder to support the investment in marketing costs associated with the VW Emissions
Class Action. The terms of the loan are that interest accrues at the rate of 10%
per annum, with maturity at the earlier of settlement of the claim and receipt of
the proceeds or three years from the date of receipt of funding. In addition to 
the interest charges the loan attracts a share of the proceeds to be determined 
by reference to the level of fees generated for the Group. The terms of this arrangement
remain unchanged.

> **Alan Sellers, Executive Chairman of Anexo Group, said: **“We are delighted to
> have agreed new terms with our two longstanding finance providers. The agreements
> underline the strength of our relationships with our lenders and their confidence
> in our business model and growth aspirations. The new facilities will enable us
> to broaden our dual strategies of raising the number of vehicles on the road, 
> while investing in legal staff and infrastructure to increase the level of cash
> collections. The Board believes that its policy of concentrating on growth will
> offer new opportunities for the Group and create long-term value for all our shareholders.”

Share on: