Agreement of New Debt Facility

RNS Number : 9328A

Learning Technologies Group PLC

29 March 2017

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.  UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. 

29 March 2017

Learning Technologies Group plc

(AIM: LTG)

Agreement of New Debt Facility with Silicon Valley Bank

Learning Technologies Group plc, the leading e-learning company, is pleased to announce that it has signed a new debt facility for £20 million. The facility is provided by Silicon Valley Bank ("SVB"), a bank focused on innovation businesses, enterprises and their investors, and comprises a £10m term loan and £10m revolving credit facility, both available to LTG for five years.

The new SVB debt facility replaces LTG's previous $16m debt facility with Barclays Bank PLC.  Part of the facility shall be applied to settle a portion of the consideration payable by LTG pursuant to LTG's cash offer for the entire issued and to be issued share capital of NetDimensions (Holdings) Limited ("NetD"), made on 21 February 2017,  and such offer being declared unconditional in all respects on 20 March 2017.

As a consequence of this fund raising, LTG will not draw on the £5m unsecured loan from Chairman, Andrew Brode, which was arranged for the purposes of the NetD acquisition, and would have been at a higher interest rate.  The SVB debt facility will also provide LTG with additional and flexible cash resources to continue the expansion of its portfolio of companies.

Jonathan Satchell, CEO at LTG, said: "Our business has continued to go from strength to strength and this financing will enable us to further our growth ambitions. We always aim to work with partners who truly understand our business model and the sector in which we work. Silicon Valley Bank's passion for the technology sector and ability to move quickly is a strong reflection of its expertise. We have been very impressed with the team and are especially pleased to incorporate a partner who can support our growth aspirations globally."

Rosh Wijayarathna, Director at Silicon Valley Bank, who led the deal, said: "The NetD acquisition further diversifies LTG's footprint both geographically and vertically in the regulatory space, and LTG's management excel in their ability to integrate acquisitions at speed. The metrics continue to be very impressive and a real testament to the business and culture the management team have built. We are very excited to be part of the LTG story and look forward to supporting the continued growth."

Enquiries:

Learning Technologies Group plc Jonathan Satchell, Chief Executive Neil Elton, Group Finance Director	[phone]
Numis Securities Limited Stuart Skinner/Michael Wharton (Nominated Adviser) Ben Stoop (Corporate Broker)	[phone]
Hudson Sandler LLP Andrew Hayes/Bertie Berger	[phone]

About Silicon Valley Bank

For more than 30 years, Silicon Valley Bank (SVB) has helped innovative businesses and their investors move bold ideas forward, fast. SVB provides a range of targeted financial services and expertise through its office in the UK. With commercial and international banking services, SVB helps address the unique needs of innovators. The UK's leading technology and life science businesses, in all stages of development, look to SVB's niche expertise, experience and unparalleled network, as they grow at home and tackle new markets abroad. Learn more at svb.com/uk.

Silicon Valley Bank is registered in England and Wales at 14-18 Finsbury Square, London EC2A 1BR under No. FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.

Forward-looking statements

This announcement contains a number of forward-looking statements. LTG considers any statements that are not historical facts to be "forward-looking statements". Without limitation, any statements preceded or followed by or that include the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or words or terms of similar substance or the negative thereof, identify forward looking statements.  These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by them.  Due to such risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

 

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