Refinancing of existing revolving credit facility

Inspired PLC

14 November 2023

 

14 November 2023

Inspired plc

("Inspired" or the "Group")

Refinancing of existing £60.0 million revolving credit facility

Inspired (AIM: INSE), a leading technology enabled service provider supporting businesses in their drive to reduce energy consumption, deliver net-zero, control energy costs and manage their response to climate change, has entered into a new £60.0 million revolving credit facility agreement (the "Facility") with Santander UK plc and Bank of Ireland plc (the "Banks"), replacing its current £60.0 million facility ("Existing Facility") with the Banks which was due to mature in October 2024.

Summary of the Facility

·	Three-year term until October 2026 with options to enable the Group to extend the term until October 2028.
·	Size of the Facility is the same as the Existing Facility, £60 million, with an additional £25.0 million accordion option.
·	Reaffirmation of the long-term support from Santander and Bank of Ireland, who have been working with the Group since 2013 and 2019 respectively.
·	Covenants:
	-	Interest Cover* is not to be less than 4.00:1.00 during the term of the Facility; and
	-	Adjusted Net Leverage** is increased covenant headroom to not exceed 2.75:1.00 initially with covenant ratio tapering to 2.00:1.00 in the final year of the initial three-year term, in line with the Board's ambition to reduce Adjusted Leverage to below 1.00:1.00.
·	Margin spread over SONIA is broadly in line with the Existing Facility reflecting the current interest rate environment and  the margin scales down according to the level of Adjusted Net Leverage, aligning to the Board's ambition to reduce Adjusted Net Leverage significantly over the term of the facility.

Commenting on the Facility Paul Connor, Chief Financial Officer of Inspired, said: "We look forward to continuing our relationship with both Santander and Bank of Ireland. Our longstanding relationship with them has been instrumental in the growth of Inspired, and the Board greatly values their ongoing support.

"The Facility continues to provide the Group with the headroom and flexibility to execute on our organic growth strategy as we seek to capitalise on the substantial opportunity within the Optimisation and ESG divisions. The Facility has been structured to align with the Board's focus on cash generation and ambition to reduce adjusted leverage to below 1.00x of Adjusted EBITDA."

Note

*Interest Cover means the ratio of Adjusted EBITDA to net finance charges in respect of any Relevant Period

**Adjusted Net Leverage means, the ratio of total net debt on the last day of that Relevant Period to Adjusted EBITDA in respect of that Relevant Period.

Enquiries:   

Inspired Energy plc Mark Dickinson, Chief Executive Officer Paul Connor, Chief Financial Officer David Cockshott, Chief Commercial Officer	[phone] www.inspiredplc.co.uk
Shore Capital (Nomad and Joint Broker) Patrick Castle James Thomas Rachel Goldstein	[phone]
Liberum (Joint Broker) Edward Mansfield Satbir Kler	[phone]
Alma Justine James Hannah Campbell Will Ellis Hancock	[phone] [phone] [e-mail]

 

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