Communications business secures £200m funding package

Yorkshire Bank Corporate & Structured Finance has supported a £200 million new finance package for the communications services business KCOM Group PLC.

The new committed revolving credit facility will replace the group’s existing facilities, with Yorkshire Bank providing £30 million of funding as part of a ‘banking club’ arrangement involving six banks in total.

KCOM, which is has its head office in Yorkshire, can trace its origins back to 1902 when Hull City Council was granted a licence to provide telephony services. The business was privatised and floated on the London Stock Exchange in 1999 and is now a leading provider of communications services to both consumer and business markets across the UK, operating through two distinct businesses:

KC and Eclipse provide telecommunications and internet-based services to consumers and businesses in the Hull and East Yorkshire region, and small businesses and consumers nationally through the Eclipse Internet brand. KC remains the main provider of fixed line communications in Hull and surrounding areas, in addition to publishing Hull Colour Pages.

Kcom and Smart421 provides tailored communications solutions to UK based businesses and public sector organisations, including systems integration and managed services of business-critical IT systems.

Paul Simpson, chief financial officer of KCOM Group, says: “We are delighted to announce our new banking facility, with a strong syndicate of banks. The terms and duration of this facility, which has been agreed well in advance of our previous arrangements expiring, reflect the substantial improvements we have made to the group’s financial position over the last 24 months.”

The Yorkshire Bank team was led by Daniel Rosinke, Corporate & Structured Finance director in Leeds, and included John Bullock and Stephanie Campbell. Daniel said: “KCOM is a long-established Yorkshire company run by an experienced management team who have successfully transformed the business into a simplified and strengthened group which has delivered strong recent profit growth.

“The refinancing provided the bank with an excellent opportunity to support KCOM’s growth strategy, with the improved financial position and new committed banking facilities providing the group with a strong platform for future organic growth. Yorkshire Bank is playing an increasing role in corporate refinancing arrangements, with KCOM the latest high-profile Yorkshire plc to join our expanding client list.”