REG - Public Policy Hldg - Supplemental Credit Facility

Public Policy HoldingAnnouncement

01/05/2024 07:00

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RNS Number : 7020M  Public Policy Holding Company, Inc.  01 May 2024

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 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via a Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

Public Policy Holding Company, Inc.

 

("PPHC" or the "Group")

 

Supplemental Credit Facility

 

$13m facility will fund an immediately accretive acquisition and continue
PPHC's growth strategy

 

Public Policy Holding Company (AIM: PPHC), the US-based government relations
and public affairs group providing clients with a fully integrated and
comprehensive range of services, has entered into a supplemental $13m credit
facility with Bank of America, N.A. (the "Supplemental Credit Facility").

 

Key Terms:

·      $13m Senior Secured Supplemental Credit Facility, of which $6m
has been drawn as of 30 April 2024

·      The remainder is available to the Group within six months,
enabling it to continue to facilitate M&A activity where the pipeline of
opportunities is strong

·      The interest rate payable is the Secured Overnight Financing Rate
(SOFR) plus 260 basis points

·      The Supplemental Credit Facility will mature on April 30, 2028

Prior to today's announcement, PPHC carried a credit facility of $17m,
announced on 1 March 2023, and which is also provided by Bank of America, N.A
(the "Initial Credit Facility"). This Initial Credit Facility consisted of a
$14m Term Loan and a $3m Line of Credit. It matures on 31 January 2026 and has
approximately $10m outstanding as of 30 April 2024.

 

The Group intends to maintain a prudent leverage ratio as it executes on a
dual-track strategy of organic growth and earnings accretive M&A.

 

The Board of PPHC recognises the importance of its ability to utilise,
depending on market conditions, both the equity and debt markets to fund its
growth strategy. Maintaining flexibility facilitates the Group's wider capital
allocation policy, which includes the payment of dividends, in a de-risked
manner.

 

Stewart Hall, CEO of PPHC, commented:

"This supplemental facility will fund an immediately earnings accretive
acquisition and provides additional capital for deployment as suitable
opportunities present themselves. The global strategic communications markets
in which we operate remain highly fragmented, and the pipeline of
opportunities in the US, UK and Europe remains healthy. The Group's strong
cash generation has already enabled us to pay down the existing facility
whilst maintaining a high dividend payout and investing in organic growth."

 

For further information contact:

 

 Public Policy Holding Company, Inc.                         +1 (202) 688 0020

 Stewart Hall, CEO                                           enquiries@pphcompany.com

 Roel Smits, CFO

 Thomas Gensemer, Chief Strategy Officer

 Stifel (Nominated Adviser & Broker)                         +44 (0) 20 7710 7600

 Fred Walsh, Tom Marsh (Investment Banking)

 George Moore-Gwyn, Josh Rodgers (Capital Solutions Group)

 Buchanan Communications (Media Enquiries)                   +44 (0) 20 7466 5000

 Chris Lane, Toto Berger                                     pphc@buchanan.uk.com

 

About PPHC

Incorporated in 2014, PPHC is a US-based government relations and public
affairs group providing clients with a fully integrated and comprehensive
range of services including government and public relations, research, and
digital advocacy campaigns. Engaged by approximately 1200 clients, including
companies, trade associations and non-governmental organisations, the Group is
active in all major sectors of the U.S. economy, including healthcare and
pharmaceuticals, financial services, energy, technology, telecoms and
transportation. PPHC's services support clients to enhance and defend their
reputations, advance policy goals, manage regulatory risk, and engage with US
federal and state-level policy makers, stakeholders, media, and the public.

 

PPHC operates a holding company structure and currently has nine operating
entities comprising Crossroads Strategies, Forbes Tate Partners, Seven Letter,
O'Neill & Associates, Alpine Group Partners, KP Public Affairs, MultiState
Associates, and Concordant. Operating in the strategic communications market,
the Group has a strong track record of organic and acquisitive growth, the
latter focused on enhancing its capabilities and to establish new verticals,
either within new geographies or new related offerings.

 

For more information, see www.pphcompany.com (http://www.pphcompany.com) .

 

 

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