Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Kingswood agrees new £8m unsecured debt facility

(Sharecast News) - Wealth and investment manager Kingswood Holdings announced the acquisition of a new £8.0m unsecured debt facility from funds managed by Pollen Street Capital on Friday.

The AIM-traded firm said the facility agreement, designed to bolster its capital requirements and support its growth trajectory, came with headline terms including an £8m facility size, an expiry date of no later than 17 October 2030, and an interest rate of 12%, compounded and payable upon maturity.

It said the transaction would position it to capitalise on emerging opportunities within the wealth and investment management landscape.

Kingswood noted that by entering into the facility, it was engaging in a related party transaction with HSQ Investment, a wholly owned indirect subsidiary of funds managed and/or advised by Pollen Street.

Lindsey McMurray and Duncan Gerard, both non-executive directors of Kingswood, were also employees of Pollen Street.

As a result, the agreement fell under the AIM rules as a related party transaction.

The firm's directors, excluding McMurray and Gerard, had thus conducted an evaluation of the terms of the facility agreement.

Following consultation with the company's nominated adviser Cavendish Capital Market, the directors said they deemed the terms fair and reasonable, safeguarding the interests of Kingswood's shareholders.

"Since their first investment in Kingswood in 2019, Pollen Street has been a great partner to the company and this additional investment demonstrates a further positive commitment towards our ambition to build a leading business in the sector," said group chief executive officer David Lawrence.

At 1041 GMT, shares in Kingswood Holdings were down 4.57% at 10.02p.

Reporting by Josh White for Sharecast.com.

Share this article

Related Sharecast Articles

Frontier IP appoints new finance chief
(Sharecast News) - Intellectual property commercialisation specialist Frontier IP announced the appointment of Jo Stent as its new chief financial officer on Friday, effective from 22 April.
Directa Plus asphalt technology laid at Imola Circuit
(Sharecast News) - Graphene nanoplatelet specialist Directa Plus announced on Friday that 'GiPave', an asphalt solution incorporating graphene and recycled plastics, was being installed at the Imola Circuit ahead of the Emilia-Romagna Grand Prix in May.
Huddled Group buys Food Circle for £0.3m
(Sharecast News) - E-commerce investor Huddled Group announced the acquisition of online retailer Food Circle Supermarket on Friday, for total consideration of up to £0.3m.
Bens Creek shares fall as it moves mine into care and maintenance
(Sharecast News) - Shares in North American metallurgical coal miner Bens Creek were sliding on Friday afternoon, after the company issued an update on its operations and working capital position, confirming that its West Virginia mine was moving into care and maintenance.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.