S4 Capital plans £321m expansion as business is powered by post-pandemic rebound
Sir Martin Sorrell’s advertising agency is booming, driven by the global economy post-pandemic rebound and transformations in digital marketing, S4 Capital said this morning.
S4 Capital said it has secured a debt refinancing which will fund future expansion. With a continued rise in expectations, the company plans to continue its expansion in the 12 months to early June.
The London-based company said it has secured a seven-year loan with the likes of Credit Suisse AG, London branch, HSBC, and Barclays worth £321m. They also announced a five-year £100m revolving credit facility with Credit Suisse, HSBC, Barclays, JP Morgan and BNP Paribas.
Once S4 Capital completes its refinancing they plan to not exceed the maximum net leverage of 1.5 to 2 times.
Spending on advertising, particularly digital, was fast-tracked during the pandemic.
S4 Capital say digital is a ‘fast-growing segment’ for the company which estimates that by 2022 shares in the area will rise by 60per cent and by 64per cent in 2024. However, shares for the company were down 2 per cent Monday morning at 643.8pence each in London.