SHARES in software firm WANdisco jumped five per cent on the news that it has secured a $10m (£6m) revolving credit facility with HSBC Bank to help fund its expansion.
Sheffield-based WANdisco’s chief executive David Richards said the facility will be available until March 2017 and the funds will be used to finance its expansion in the Big Data market.
The term Big Data refers to data that is so large and complex it can’t be processed using traditional desktop computers.
The group’s shares closed up 20.5p at 452.5p.
The interest rate on funds drawn down under the facility will be 1.2 per cent above the prevailing LIBOR interest rate.
Paul Harrison, WANdisco‘s chief financial officer, said: “HSBC’s involvement, alongside our equity investors, diversifies our financing options as we expand in the Big Data marketplace.”
The market was pleased as the facility reduces the need for a share placing and analysts said the terms of the deal were favourable.
Analyst Roger Phillips at Investec said: “This is positive news, reinforcing that a near-term equity capital raise would be a matter of choice, as opposed to necessity. “Additionally, both the identity of the lender and terms are impressive, and in our view indicative of the strength of the group’s business model and potential.”