New Metro Bank facilities

Mercia Asset Management PLC

("Mercia", the "Company" or the "Group")

New Metro Bank facilities

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused private capital asset manager with over £2.2billion of assets under management, announces that it has entered into a three-year facilities agreement with Metro Bank PLC, the UK-based retail and commercial bank, for up to £38.0million.

The agreement comprises a term loan facility of £13.0million and a £25.0million revolving loan facility.

Each facility bears interest by reference to Sterling Overnight Index Average ("SONIA") plus the applicable margin. The term loan facility has a margin of 3.99% per annum. The revolving loan facility has an opening margin of 3.50% per annum, subject to a net leverage ratchet reducing to 3.00% per annum depending on leverage. The facilities agreement includes customary representations, undertakings, financial covenants, security and events of default.

The Company intends to utilise the facilities to support the Group's on-going growth initiatives, as part of its Mercia '27 strategic plan.

Dr Mark Payton, Chief Executive Officer of Mercia Asset Management PLC, said:

"These new bank facilities provide further flexibility to support the Group's on-going growth initiatives. We are very pleased to begin our new banking relationship with Metro Bank, who have been both proactive and constructive throughout our engagement with them in agreeing these facilities."

With the publication of this announcement, this information is now considered to be in the public domain.