Fairpoint Group partners with AIB to acquire 20m pound banking facility

21st May 2014 09:25

AIM-listed financial services firm Fairpoint Group has signed a joint agreement with Allied Irish Banks (AIB) to acquire a new 20m pound banking facility.The group's new facility compromises an £8m term loan which will be used to finance the initial cash consideration. The acquisition was announced on June 9th and has been secured for a five-year term.The loan, which is expected to be completed by June 30th, will be drawn on legal completion of the acquisition and will be subject to approval by the Solicitors Regulation Authority.The group said £5m of the loan is repayable during the 5-year term and £3m will be repayable at the end of the same period.Chief Executive Officer Chris Moat said: "The new facility supports the proposed acquisition of Simpson Millar and provides long term financing to underpin the group`s strategy of diversification of its income streams, by both organic growth and acquisition."As of 10:57 the share price had dropped by 2.8% to 149p.WS