Refinancing

RNS Number : 8208I

Card Factory PLC

21 April 2022

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

21 April 2022

Card Factory plc

(" Card Factory " or the " Company ")

Refinancing successfully completed extending debt facilities until September 2025

Card Factory, the UK's leading specialist retailer of greeting cards, gift, wrap and bags, today announces that it has agreed terms of a refinancing with its current banking syndicate. 

Terms of the refinancing

Card Factory has made good progress in using its positive cash flows to reduce overall debt.  Consequently, it has agreed revised terms on reduced facilities of £150 million (previously £225 million).

As at 31 March 2022, the Group's net debt (excluding lease liabilities) was £79 million. The revised facilities comprise:

· a £100m revolving credit facility (RCF), substantially on the same terms as the previous RCF, subject to revised financial covenants, available until September 2025;

· a £11.25m term loan facility, to be repaid between 31 January 2023 and 31 January 2024;

· a £18.75m term loan facility, to be repaid in 6 quarterly instalments of £1.75m from April 2024 and a final bullet repayment of the balance in September 2025; and

· in aggregate, a balance of £20m Coronavirus Large Business Interruption Loan Scheme (CLBILS) facilities, repayable by September 2023.  Therefore, the Group will reduce its government backed CLBILS element from the original £50m to £20m.

The best efforts commitment given by Card Factory to its banks, to raise net equity proceeds of £70m by 30 July 2022 has been removed from the revised facilities. The Board has no current intention of completing an equity raise.

The financial covenants incorporated in the facilities provide for (i) EBITDA (pre IFRS16) to net debt (i.e. Leverage, excluding lease liabilities) and (ii) EBITDA (pre IFRS16) to interest cover.  Restrictions on payment of dividends continue to apply until CLBILS facilities and the £11.25m term loan are repaid (expected 31 January 2024), subject to the Leverage ratio being 1.5x or less.

The Company will release the preliminary results for the financial year ended 31 January 2022 on 3 May 2022.

Darcy Willson-Rymer, Chief Executive, said:

"I am pleased to be able to announce the successful completion of Card Factory's refinancing today. This is an important milestone for our business, ensuring we have the financial foundations in place to capitalise on the opportunities ahead. We are now well positioned to continue our strategic transition from a store-led card retailer to a market leading omnichannel retailer of cards and gifts.  I look forward to updating you on our progress at our full year results next month."    

Enquiries

Card Factory plc   via Tulchan Communications (below)

Darcy Willson-Rymer, Chief Executive Officer

Kris Lee, Chief Financial Officer

Tulchan Communications    [phone]

James Macey White / Alison Lygo  [e-mail]

 

END

 

 

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