KELLY GROUP LIMITED - Extension Of A Term Debtors Securitisation Funding Programme

Extension Of A Term Debtors Securitisation Funding Programme

KELLY GROUP LIMITED
Registration number: 1999/026249/06
Share code: KEL
ISIN: ZAE000093373
(“Kelly Group” or “the Company” )

EXTENSION OF A TERM DEBTORS SECURITISATION FUNDING PROGRAMME

1.      INTRODUCTION

        The Company is pleased to announce that it has extended its debtors’ securitisation funding
        programme with Investec Bank Limited (“Investec Bank”), on amended terms (“the
        Extended Programme’). In terms of the Extended Programme, the Kelly Group has secured
        up to R150 million of debt funding from Investec Bank.

2.      THE EXTENDED PROGRAMME IN SUMMARY
        2.1.     Pursuant to the Extended Programme, the Kelly Group (including certain
                 subsidiary entities) has sold on a recurring basis its trade debtors to an
                 independently owned special purpose entity, Kelly Corporate Finance RF
                 Proprietary Limited (“Kelly Corporate Finance”).
        2.1.1.   Kelly Corporate Finance has funded the purchase price paid to the Kelly Group
                 from a R50 million revolving credit note (“RCN”), provided by Investec Bank, and
                 by issuing R100 million of Senior, 18 month secured, non-amortising debentures
                 (“Senior Debentures”) to Investec Bank. The balance of the purchase price has
                 been funded by Kelly Corporate Finance by means of a subordinated loan raised
                 from the Kelly Group in order to over-collateralise the Senior Debentures.
        2.1.2.   The funding rates are a combination of fixed rates (in respect of the Senior
                 Debentures) and floating rates (in respect of the RCN).
        2.1.3.   The funding raised extends the Company’s existing debtors’ securitisation funding
                 transaction, which was originally implemented in 2001 and previously extended in
                 2010, on amended terms. The Extended Programme constitutes a single indivisible
                 transaction, and has been arranged for the Kelly Group by Mettle Specialised
                 Finance.

3.      RATIONALE

        With the Company’s existing term funding scheduled for maturity on 30 April 2013, the
        Company’s board resolved to extend the maturing funding arrangement for a further period,
        with additional flexibility to meet its ongoing requirements. The updated debtors’
        securitisation funding transaction is the Company’s primary source of debt funding. This
        arrangement has proved an efficient means of securing funding for the Kelly Group on a
        sustainable basis.

        “The Kelly Group’s strongly performing blue chip debtors book (and related cash flows) along
        with its experienced debtor management team, enabled the Company to secure its
        anticipated funding requirements at competitive rates, and to expand its funding partnership
        with Investec Bank”, said Gareth Tindall, Chief Executive Officer.

Johannesburg
7 May 2013

Sponsor
PSG Capital

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