Outsourcery PLC New Debt Facilities from Vodafone

TIDMOUT

RNS Number : 0747S

Outsourcery PLC

03 July 2015

3 July 2015

OUTSOURCERY PLC

("Outsourcery" or the "Company")

New Debt Facilities from Vodafone

Outsourcery (AIM: OUT), a leading Cloud Service Provider offering cloud-based IT and unified communications solutions for the commercial and public sectors, has entered into an amortising term loan with Vodafone Group Services Limited ("Vodafone").

Under this agreement, Outsourcery will be provided with a GBP4 million term loan for the 48 months ending June 2019. Interest will be charged monthly at an interest rate of 7.5% per annum and principal loan repayments will be spread equally over the 12 quarterly periods from year 2 onwards. As part of the facility, Vodafone will be granted a warrant over 3,000,000 new ordinary shares at 30p per share (a 25% premium to the previous day's closing price) exercisable between 42 and 54 months after drawdown of the facility and in certain other exceptional circumstances. The new term loan replaces Outsourcery's existing GBP1.4 million loan facility due to expire on 1 April 2017, and a GBP0.3 million mortgage facility provided by Barclays Bank. The remaining GBP2.3 million of the new facility can be used for general working capital purposes.

Additionally, Outsourcery has also agreed amended terms with Etive Capital Limited ("Etive") on its outstanding GBP1 million loan, extending the repayment from 22 May 2016 to 31 December 2017. The GBP1 million note (currently non-interest bearing) will attract interest after 22 May 2016 at 10% per annum payable quarterly in arrears.

As a result of these new debt facilities, Outsourcery will benefit from: 


--      a reduced weighted average cost of capital; 
   --      additional working capital to support the Company's requirements; and 
   --      further alignment with a major strategic partner, Vodafone.

Piers Linney, Co-CEO of Outsourcery, commented: "Vodafone Group is a key strategic partner for Outsourcery and we are pleased to be deepening our relationship. Together with our extended loan from Etive, we will benefit from a reduced cost of capital, and have greater flexibility to pursue our growing pipeline of opportunities with enterprise customers and the public sector."

Jeni Mundy, Director, Product Management, Vodafone Group Enterprise, said: "We are pleased to partner with innovative communications technologies, and see this loan agreement as an example of how large organisations can support SMEs achieve their growth ambitions. Our strategic partnership with Outsourcery is key to our unified communications and collaboration strategy and we look forward to addressing this large market opportunity together with Outsourcery."

For further information please contact: 


Outsourcery plc 
  Piers Linney, Co-CEO 
  Simon Newton, Co-CEO            +44 (0)330 313 0077 
 Investec 
  Andrew Pinder / Patrick Robb 
  / Dominic Emery                 +44 (0)20 7597 5100 
 FTI Consulting 
  Matt Dixon / Dwight Burden 
  / Rob Mindell                   +44 (0)20 3727 1000

About Outsourcery

Outsourcery is a world-leading UK-based Cloud Service Provider ("CSP"), which aims to remove the need for organisations to own and manage on-premise IT, unified communications and collaboration applications and infrastructure.

Outsourcery offers hosted software applications (software-as-a-service), cloud infrastructure (infrastructure-as-a-service) and next generation unified communications and collaboration solutions based on Microsoft Skype for Business and is capable of fully integrated solutions to meet the needs of customers, partners and the UK public sector alike.

Outsourcery's O-Cloud platform has been certified to run government classified information at 'Official' and 'Official sensitive' over the internet. This gives Outsourcery CESG Pan Government Accreditation ("PGA") to meet data sovereignty and security specifications for the public sector. The Company's Assured O-Cloud platform has been certified to run government classified information at 'Official' and 'Official sensitive' over the Public Services Network (PSN) and is aimed at UK central government departments. Outsourcery was a Finalist for Microsoft's worldwide Government Partner of the Year 2015 award and the only UK finalist.

Outsourcery has 110 employees, with offices in Manchester, London and Leicester.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUGUWPMUPAGRP

(END) Dow Jones Newswires

July 03, 2015 02:00 ET (06:00 GMT)

distributed by