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On 16 November 2023, Pressure Technologies plc completed a debt refinancing by formally executing a new £1.5 million Term Loan Facility with Rockwood Strategic plc and Peter Gyllenhammar AB. This facility was fully drawn down to repay an approximately £0.9 million bank loan to Lloyds Banking Group, settle transaction costs, and provide additional working capital. In conjunction with this, the Lenders were issued 1,933,358 warrants, representing 5% of the issued share capital, exercisable at 32 pence per share for 5 years.
| Date | 16 Nov 2023 |
| Time | 07:00:13 |
| Category | Director/PDMR dealings |
| ID | 5964T |
16 November 2023
Pressure Technologies plc
("Pressure Technologies" or "the Company" or "the Group")
Debt Refinancing and Grant of Warrants
Pressure Technologies plc (AIM: PRES), the specialist engineering group, is pleased to announce completion of the debt refinancing and grant of warrants announced on 24 October 2023.
Debt Refinancing
The Company has formally executed legal documentation with Rockwood Strategic plc1 and Peter Gyllenhammar AB (together "the Lenders"), both major shareholders in the Company, in relation to a new Term Loan Facility of £1.5 million ("the Facility").
The Facility has been subject to full drawdown and has been utilised to repay an outstanding bank loan of approximately £0.9 million to Lloyds Banking Group, to settle transaction costs and to provide additional working capital headroom.
The principal terms of the Facility are as described in the prior announcement dated 24 October 2023.
Grant of Warrants
In conjunction with the provision of the Facility, the Lenders have been issued with 1,933,358 warrants in aggregate (representing 5% of the issued share capital) to subscribe for ordinary shares in the Company ("the Warrants") at a price of 32 pence per share, representing a 20% premium to the closing share price on 23 October 2023 (being the day prior to the announcement of the Facility). The Warrants may be exercised at any time in the 5 years following drawdown of the Facility and continue to be exercisable in the event the Facility is repaid before its final expiry.
Chris Walters, Chief Executive of Pressure Technologies plc, commented:
"We are delighted to have completed the refinancing with the support of two of our major shareholders. Our new Facility will enable us to further develop the business whilst we realise value from the sale of the Precision Machined Components division."
Richard Staveley, Non-Executive Director of Pressure Technologies plc and Fund Manager of Rockwood Strategic plc, commented:
"Constructively engaging with Pressure Technologies has led to us providing this loan, alongside Peter Gyllenhammar AB, another major shareholder, to support the Company through to the planned divestment of the Precision Machined Components division, which we believe will unlock shareholder value. Chesterfield Special Cylinders is a world-class manufacturing business serving a multitude of allied navies, air forces and leading industrial businesses. Exposed to the emerging hydrogen economy, it is also a trusted provider of integrity management services to mission-critical defence platforms. The Company has material asset backing and we are proud to provide finance to such an important business within the UK's manufacturing base."
Additional Information
1 Harwood Capital LLP is the investment manager of Rockwood Strategic plc.
For further information, please contact:
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Pressure Technologies plc Chris Walters, Chief Executive Steve Hammell, Chief Financial Officer |
Tel: 0333 015 0710 |
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Singer Capital Markets (Nomad and Broker) Rick Thompson / Asha Chotai |
Tel: 0207 496 3000 |
|
Houston (Financial PR and Investor Relations) Kay Larsen / Ben Robinson |
Tel: 0204 529 0549 pressuretechnologies@houston.co.uk |
COMPANY DESCRIPTION
With its head office in Sheffield, the Pressure Technologies Group was founded on its leading market position as a designer and manufacturer of high-integrity, safety-critical components and systems serving global supply chains in oil and gas, defence, industrial and hydrogen energy markets.
The Group has two divisions:
· Chesterfield Special Cylinders (CSC) - www.chesterfieldcylinders.com
· Precision Machined Components (PMC) - www.pt-pmc.com
o Includes the Al-Met, Roota Engineering and Martract sites.
Notification and public disclosure of transactions by Persons Discharging Managerial Responsibilities ("PDMR") and Persons Closely Associated with them:
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1
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Details of the Person Discharging Managerial Responsibilities / Person Closely Associated
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a)
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Name
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Rockwood Strategic plc |
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2
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Reason for the notification |
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a)
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Position/status |
Person Closely Associated with Richard Staveley (Director and PDMR of the Company) |
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b)
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Initial notification /Amendment |
Initial Notification
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3
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Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
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a)
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Name |
Pressure Technologies plc |
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b)
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LEI
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213800PTKN1VDP2DIN05
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4
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Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
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a)
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Description of the financial instrument, type of instrument |
Warrants to subscribe for ordinary shares |
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Identification code |
GB00B1XFKR57 |
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b) |
Nature of the transaction |
Grant of Warrants |
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c)
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Price(s) and volume(s) |
Volumes: 966,679 warrants Exercise price: 32p
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d)
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Aggregated information |
N/A |
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e)
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Date of the transaction |
14 November 2023 |
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f)
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Place of the transaction |
Outside of a trading venue |