Hayward Tyler : Update on New Banking Facilities

21 December 2016

Hayward Tyler Group plc

Update on New Banking Facilities

Hayward Tyler Group plc ('HTG', the 'Company' or 'Group'), the specialist engineering group, comprising the operating companies of Hayward Tyler and Peter Brotherhood, is pleased to announce that it has successfully closed the third issue of loan notes under the terms of its secured loan note programme ('Loan Note Programme'). This follows the recent approval by existing noteholders of an increase in the programme limit from £3 million to £10 million.

The new issue is in the amount of £2.1 million. The notes pay interest at 7.00% p.a. and will be redeemed on 20 December 2020. Encouraged by the support shown by investors, the Company may utilise the Loan Note Programme to conduct a further issue in January.

Commenting on the transaction, Andrew Boyle, CEO of Lesmoir-Gordon, Boyle & Co. Limited, the arranger, said 'Investors' positive response to the new issue reflects the success of the Company in completing the Luton Centre of Excellence and integrating the Peter Brotherhood operations. We expect that interest in the Loan Note Programme, particularly among institutional investors, will grow as the Company's business develops further.'

Loan Note Programme

The Loan Note Programme, which ranks behind the Company's banking facilities, was established in January 2015 to provide a diversified source of funding and support the Company's strategy for growth. The Company successfully issued £3 million of loan notes in 2015 to partially fund the extension to the Centre of Excellence. Tied to the on-going development of the business, the Company will use the proceeds of the new issue to repay short-term borrowings under its revolving credit facility ('RCF'). An amount of approximately £3 million borrowed under the RCF was used to purchase fixed assets for the Centre of Excellence and, accordingly, the new issue under the Loan Note Programme enables the Group to match long-term assets with medium to long-term debt. HTG currently intends to leave an already authorised, but not issued amount of around £4 million to be available under the Loan Note Programme for the funding of further growth opportunities.

For further information:

Hayward Tyler Group plc [phone]

Ewan Lloyd-Baker, CEO

Nick Flanagan, CFO

FinnCap Limited-NOMAD and Broker[phone]

Matt Goode, Corporate Finance

Emily Watts, Corporate Finance

Tony Quirke, Corporate Broking

Akur Limited - Corporate Finance Adviser[phone]

David Shapton

Tom Morrell

Buchanan Communications, Financial PR[phone]

Charles Ryland

Chris Judd

Jane Glover

Lesmoir-Gordon, Boyle & Co. Limited [phone]

Angus Grierson