STM group has secured £5.5m of funding in order to fuel the external growth of the company through acquisitions.
The loan has been issued with the intention to “purely” fund mergers and acquisitions over the next year and a half. This comes after STM’s substantial activity in the consolidation market, acquiring Berkely Burke’s international pension business and self-administered scheme in August for £2.9m.
In an announcement, STM detailed the structure of the funding: “The Facility has a 5 year term with capital repayments structured over ten years and a final instalment to settle the outstanding balance in full at the end of the 5 years. Interest on the drawn funds will be charged at 3.5% per annum over the Sterling Relevant Reference Rate, with the undrawn balance charged at an interest rate of 1.75% per annum over the Sterling Relevant Reference Rate.”
A trading update revealed that STM are wary of the impact of the Covid-19 crisis on its business performance, and planned to “take a more conservative stance” moving forward.