New expanded £125 million Credit Facility

22 December 2020

(EPIC: SRC / Market: AIM / Sector: Construction Materials)

SIGMAROC PLC

('SigmaRoc', the 'Company' or the 'Group')

New expanded £125 million Credit Facility

SigmaRoc, a heavy construction materials group active in the UK, Channel Islands and the Benelux, is pleased to announce it has entered into a new Syndicated Senior Credit Facility of up to £125 million (the 'Credit Facility') led by Santander UK and including several major UK and European banks. The Credit Facility, which comprises an £85 million committed term facility and a £40 million accordion option, will provide the Group with further capacity and flexibility to support its ongoing buy-and-build strategy, as well as reducing like-for-like borrowing costs. The key terms of the Credit Facility are as follows:

-       Structure: Syndicated multi-currency;

-       Size: £125 million, including an uncommitted £40 million accordion;

-       Term: 5 years, non-amortising during the first three years;

-       Interest cost: 2.5% margin over LIBOR at 2x net debt to underlying EBITDA ('Adjusted Leverage Ratio');

-       Head covenants: 3.5x Adjusted Leverage Ratio gradually decreasing over the term of the Credit Facility to 3x, with a minimum interest cover ratio of 3.5x.

The Board of SigmaRoc believes that, with this Credit Facility in place and the £12.4 million equity fundraise announced on 9 December 2020, the Group is in a solid position to continue its buy-and-build strategy and take advantage of multiple near-term opportunities. The Group reiterates its target to remain at approximately 2x Adjusted Leverage Ratio with an overall downward trend.

Max Vermorken, CEO of SigmaRoc, commented:

"I would like to thank Santander UK, who have supported our business and our growth for many years and took the lead on this expanded facility in the role as Mandated Lead Arranger. The Group has benefitted from their pragmatic approach and speed of execution. I am pleased we will be entering into 2021 with the right facilities in place, backed by high quality banks in the UK and Europe, to support the Group in its development and further growth."

Rob Purdew, Associate Director at Santander, commented:

"SigmaRoc PLC has an excellent track record in executing its buy-and-build strategy and is well placed to further develop and improve its position within the construction materials sector in Europe. We are pleased to have strengthened our relationship with the Group through our role as Mandated Lead Arranger with this high growth and internationally focused company. The Credit Facility allows for significant headroom in support of SigmaRoc's acquisition-led strategy and confirms that there is significant lender appetite for this resilient and strongly performing business."

Information on the Company is available on the Company's website, www.sigmaroc.com.

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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.