Statement re Update on Financing

Dialight PLC

18 September 2023

 

Dialight plc

("Dialight" or the "Group")

     Update on Financing

The Group's financing comprises a $34m revolving credit facility with HSBC, which matures in July 2025 and has an option for two one-year extensions. The Group has banking covenants in relation to leverage and interest cover, which are tested quarterly. Given the current volatility in market conditions, the Group has been engaged in discussions with HSBC to secure additional covenant flexibility to support the business in the near term. Dialight is pleased to report that it has agreed, subject to documentation, to vary the interest cover covenant for the September 2023 test period from 4.0x to 2.5x.

As set out in the interim results published this morning, the Group has initiated an ambitious transformation plan designed to materially improve financial performance over the medium term. With a view to the transformation plan being executed at pace, the Board has been reviewing the Group's funding position to ensure the business has adequate levels of headroom to enable investment in key workstreams. As part of this, the Board is reviewing the Group's portfolio and will seek to divest assets and businesses it determines as non-core. However, the timing and terms of any potential divestment are uncertain. Consequently, the Board is intending to engage with key shareholders to explore undertaking an equity fundraising with a view to accelerating and de-risking the transformation plan. There can be no certainty that an equity fundraising will proceed or, if it does, on what terms. Further updates on the Group's financing strategy will be made as appropriate.

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of this Regulations.

Contacts: 

Dialight plc

Tel: [phone]

Fariyal Khanbabi - Group Chief Executive

Richard Allan - General Counsel & Company Secretary

 

END