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UK's NMCN to get $33 million in funding from former Stobart execs, others

UK's NMCN to get $33 million in funding from former Stobart execs, others
UK's NMCN to get $33 million in funding from former Stobart execs, others   -   Copyright  Thomson Reuters 2021
By Reuters

– British construction group NMCN Plc said on Monday it would get funding of 24 million pounds ($33.15 million) from a company led by former Stobart executives Andrew Tinkler and Ben Whawell and other investors.

NMCN, which has been working since the fourth quarter of 2020 to secure a financing package, will also raise up to 5 million pounds through an open offer to existing shareholders.

The funding includes a capital injection of 10 million pounds by way of a bridging facility and an equity subscription from new investors for 14 million pounds.

Svella, a UK-based firm led by Tinkler and Whawell, has provided the loan facility and up to 7.42 million pounds of the equity subscription, which would make it the controlling shareholder of NMCN after the deal closes.

“We are pleased to have concluded this arrangement with Svella and other stakeholders, which will fully re-capitalise the company, Non-Executive Chairman Ian Elliot said.

NMCN also said its bank Lloyds has agreed to extend an existing 12.2 million pounds debt facility to either the earlier of Sept. 30 or completion of the deal.

The company, which undertakes works in the building, civil engineering, highways and utilities sectors, has struggled with contractual issues and the impact of the COVID-19 pandemic.

($1 = 0.7241 pounds)