Staffing 360 Solutions, Inc. (Nasdaq:STAF), a company executing an international buy-and-build strategy through the acquisition of staffing organizations in the United States and in the United Kingdom, today announced that it has signed an agreement to enter an Invoice Financing facility with HSBC Invoice Finance UK Ltd (“HSBC”) to cover its three business units in the United Kingdom.
In line with management’s emphasis on improving the financial health of the Company, this new arrangement replaces the existing agreements on materially more favorable terms:
Facility Limit of £11,500,000 ($16,000,000)
Advance rates against eligible invoices of 90%
The arrangement will be subject to the usual cross company guarantees between the UK legal entities and customary financial reporting and monitoring
The agreement covers Longbridge Recruitment 360, The JM Group, and the most recent acquisition of CBSbutler
“As I have stated before, Fiscal 2017 was a transformative year for the Company and we are very pleased to start the new year with the completion of another major refinancing following those that we completed in the United States in September,” said Brendan Flood, Chairman and Chief Executive Officer of Staffing 360 Solutions. “HSBC has been a great partner to CBSbutler over the years and now, with a larger offering from them, we are looking forward to the wider UK business enjoying the same level of service and relationship, at a significantly improved overall cost.”
David Faiman, Chief Financial Officer, added, “As with the recent material changes in the U.S. we have been working diligently on this transaction for some time. With the completion of the CBSbutler acquisition, we needed to ensure that our UK business was placed on a sound financial footing. The terms of the transaction are very attractive to us and the team at HSBC have impressed us at every stage of the process.”
Simon Smith, HSBC Regional Director, Global Trade and Receivables Finance, said: “We are delighted to support Staffing 360 Solutions with a new funding facility for its three UK businesses. We look forward to seeing the business develop further in 2018.”
More information about Staffing 360 Solutions, including investor materials, presentations, white papers, and webcasts, can be found at:
About Staffing 360 Solutions, Inc.
Staffing 360 Solutions, Inc. (Nasdaq:STAF) is a public company in the staffing sector engaged in the execution of an international buy-and-build strategy through the acquisition of domestic and international staffing organizations in the United States and in the United Kingdom. The Company believes that the staffing industry offers opportunities for accretive acquisitions that will drive its annual revenues to $500 million. As part of its targeted consolidation model, the Company is pursuing acquisition targets in the finance and accounting, administrative, engineering, IT, and light industrial staffing space. For more information, please visit: www.staffing360solutions.com.
Staffing 360 Solutions, Inc.
Brendan Flood, Chairman and Chief Executive Officer
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David Faiman, Chief Financial Officer
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The Equity Group, Inc.
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Enters Into £11,500,000 Asset-Backed Lending Facility with HSBC
Source: HR.com Articles