The expanding company has signed a deal with Royal Bank of Scotland (International) Limited to support its M&A growth strategy.
The credit facility is for £5.5m and will be used “purely for acquisitions”, STM says,
The company believes it will use the facility by April 2022 at the latest. It has not made clear what type of acquistions it will be seeking.
STM has acquired a number of SIPPs business in recent years including Carey Pensions, rebranded as Options.
In the summer it acquired Berkeley Burke (Financial Services) and Berkeley Burke Employee Benefit Consultants in a deal worth up to Ј2.9m. These businesses are being integrated into Options.
The new borrowing facility has a 5 year term with capital repayments structured over ten years. Interest on the drawn funds will be charged at 3.5% per annum over the Sterling Relevant Reference Rate.