Completion of Senior Debt Refinancing

RNS Number : 5567I

Card Factory PLC

02 June 2014

 

                2 June 2014

Card Factory plc ("Card Factory")

Completion of senior debt refinancing

Card Factory, the UK's leading specialist retailer of greeting cards, is pleased to confirm that it has completed the refinancing of its existing senior bank facilities, as described in its IPO prospectus dated 15 May 2014 (the "Prospectus").

As set out in the Prospectus, the new senior bank facilities (used in part for the refinancing) include a £180 million term loan facility and a £20 million revolving facility (both with a 5 year maturity).

The applicable margin is subject to an EBITDA leverage ratchet.  The initial applicable margin is 2.00% on the term loan facility and 1.75% on the revolving facility resulting in a significant reduction in the interest payable when compared to the previous higher margins under the existing senior bank facilities.

As previously announced, taking into account the IPO proceeds and transaction costs, the Group had net debt on 20 May 2014, the date that the Company's shares were admitted to listing, of approximately £160 million, representing approximately 2.0x underlying EBITDA for the year ended 31 January 2014.

ENDS
 

Enquiries

Card Factory plc                                                [phone]

Darren Bryant, Chief Financial Officer

MHP Communications                                   [phone]

John Olsen                        

Katie Hunt

Simon Hockridge

Notes to Editors

Card Factory is the UK's leading specialist retailer of greeting cards. It focuses on the value and mid-market segments of the UK's large, resilient and growing greeting cards market, and also offers a wide range of other quality products, including small gifts and gift dressings, at affordable prices. Card Factory principally operates through its nationwide chain of over 700 Card Factory stores, as well as through its online offerings: www.gettingpersonal.co.uk (which sells personalised cards and gifts) and www.cardfactory.eu.com (which sells a selection of the products available in Card Factory stores).

Card Factory commenced operations in 1997 with just one store and has expanded its store estate primarily through organic growth into a market-leading value retailer with a nationwide presence. The Group's stores are in a wide range of locations including on high streets in small towns through to major cities, shopping centre developments, out-of-town retail parks and factory outlet centres.

Under the current management team, Card Factory has developed a vertically integrated business model with an in-house design team, an in-house printing facility and central warehousing capacity of over 360,000 sq. ft. This model differentiates the Group from its competitors by significantly reducing external costs and adding value to customers in terms of both price and quality, underpinning the Group's motto: "compare the quality, compare the price".

Card Factory sold over 285 million single cards in the financial year ended 31 January 2014. In that year, the Group achieved revenue growth of 9.0% to £326.9 million and underlying EBITDA growth of 9.2% to £80.4 million (2013: £73.6 million) at a margin of 24.6%.

 

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