Public Policy Holding Company, Inc.

("PPHC" or the "Group")

New Credit Facility

$17m Credit Facility will partially fund an immediately accretive acquisition and facilitate PPHC's growth strategy

Public Policy Holding Company (AIM: PPHC), the US-based government relations and public affairs group providing clients with a fully integrated and comprehensive range of services including government and public relations, research and digital campaigns, has entered into a $17m credit facility with Bank of America, N.A. (the "Credit Facility").

Key Terms:

·    Facility 1: $3m Senior Secured Line of Credit. The interest rate payable on this facility is the Bloomberg Short-Term Bank Yield Index plus 225 basis points.

·    Facility 2: $14m Senior Secured Term Loan. The interest rate payable on this facility is the Bloomberg Short-Term Bank Yield Index plus 225 basis points.

·    The Credit Facility will mature on 31 January 2026.

Prior to today's announcement, PPHC carried substantially no debt. The Group intends to maintain a prudent leverage ratio as it executes on a dual-track strategy of organic growth and earnings accretive M&A.

The Credit Facility will be partially deployed alongside balance sheet cash to fund the cash element of a substantially and immediately earnings-enhancing acquisition. The Board of PPHC recognises the importance of its ability to utilise, depending on market conditions, both the equity and debt markets to fund its growth strategy. Maintaining flexibility facilitates the Group's wider capital allocation policy, which includes the payment of dividends, in a de-risked manner.

Stewart Hall, CEO of PPHC, commented:

"We operate in a highly fragmented market and believe effective consolidation will generate significant and long-term returns. Therefore, the pursuit of acquisition opportunities is central to the inorganic element of our overall growth strategy. In funding this strategy, we will not compromise our existing capital allocation policy and it is important that we can sensibly utilise, depending on market conditions, both the equity and debt markets. We are a cash generative business that maintains a strong balance sheet, and by electing to enter a Credit Facility we can enhance shareholder value by lowering our cost of capital and enabling us to capitalise on existing and future acquisition opportunities." 

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About PPHC

Incorporated in 2014, PPHC is a US-based government relations and public affairs group providing clients with a fully integrated and comprehensive range of services including government and public relations, research and digital campaigns. Retained by over two-thirds of its +700 clients, including corporates, trade associations and non-governmental organisations, the Group is active in all major sectors of the U.S. economy, including healthcare and pharmaceuticals, financial services, energy, technology, telecoms and transportation. PPHC's services support clients to enhance and defend their reputations, advance policy goals, manage regulatory risk, and engage with US federal and state-level policy makers, stakeholders, media and the public.

PPHC operates a holding company structure and currently has six operating entities comprising Crossroads Strategies, Forbes Tate Partners, Seven Letter, O'Neill & Associates and Alpine Group Partners, and KP Public Affairs.  Operating in the strategic communications market, the Group has a strong track record of organic and acquisitive growth, the latter focused on enhancing its capabilities and to establish new verticals, either within new geographies or new related offerings.

For more information, see www.pphcompany.com.