ECO Animal Health Group plc (LON:EAH), a leader in the development, registration and marketing of pharmaceutical products for global animal health markets, has announced that it has signed a new bank facility agreement with its bank, National Westminster Bank plc.
The new facility is a Revolving Credit Facility (“RCF”) and will provide for drawings of up to £10 million in flexible amounts and repayment periods. The facility has a term expiring on 30 June 2026. The interest rate is 1.95% plus the Sterling Overnight Index Average lending rate. Covenants, comprising customary leverage and interest cover tests, are reported six monthly to NatWest, co-incident with ECO’s AIM financial reporting obligations.
The facility is in addition to the Company’s pre-existing £5 million overdraft facility. Pre-existing security arrangements support the new facility.
The RCF will provide structured working capital support. Whilst it is not intended that the RCF will directly fund any elements of the R&D programme, its existence will ensure that the ECO Group will have the confidence to progress the new product development programme and deal with working capital movements.
Christopher Wilks, Chief Financial Officer of ECO Animal Health said: “I am very pleased to have signed this facility with NatWest; it will provide the flexibility to fund working capital movements in these uncertain times and allow us to use our core cash generated from operations to fund our exciting R&D projects.”
