Refinancing and Convex Capital Update

RBG Holdings PLC

11 December 2023

 

11 December 2023

RBG Holdings plc

(the "Group", or the "Company")

Refinancing and Convex Capital Update

Refinancing

RBG Holdings plc (AIM: RBGP), the professional services group, is pleased to announce that it has renewed and extended its existing borrowing facilities with its current provider, HSBC.

The renewed facility, which runs until 31 December 2025, totals £24.5 million, and consists of a £18m revolving bank facility and a £6.5m term loan. The renewed facility replaces the £21.5 million of facilities which were due for renewal in April 2024. The interest rate on the renewed facility will remain the same as for the previous facilities, paying a margin of 2.4% - 3.15% over the Sterling Overnight Index Average (SONIA), resulting in a current effective rate of 8.3%.

The Board has previously stated that reducing the Group's debt from its existing level is a priority. A number of actions have already been taken that will help achieve this, including suspending the dividend policy and exiting the Company's third-party litigation finance business, LionFish Litigation Finance Limited.

Convex Capital Update

Following its announcement on 31 October 2023, the Group is pleased to confirm that the Convex Capital transaction mentioned has now completed. Following the completion of this transaction, the Group's pre-IFRS 16 net debt position is £22.6 million (as at 8 December 2023).

The Company hopes to announce a further update on the progress of other Convex Capital transactions in its upcoming pre-close trading statement.

Kevin McNair, Chief Financial Officer, RBG Holdings, said: "Our new facility gives the Group and its stakeholders the time and stability needed as we refocus the Group under its new management team. After a comprehensive process, we are delighted to be continuing our long-standing relationship with HSBC who are supportive of our plans.

"The completion of the Convex Capital transaction is an encouraging step forward for our non-legal services business. We are delivering on our promises and our focus is on our commitment to reduce the Group's debt and restore value to shareholders."

Enquiries:

RBG Holdings plc Jon Divers, CEO Kevin McNair, CFO	Via SEC Newgate
Singer Capital Markets (Nomad and Broker) Rick Thompson / Alex Bond / James Fischer (Corporate Finance) Tom Salvesen (Corporate Broking)	Tel: [phone]
SEC Newgate (Financial Communications) Tali Robinson / Robin Tozer	Tel: [phone] [e-mail]

About RBG Holdings plc

·    Further information about RBG Holdings plc is available at:  www.rbgholdings.co.uk

·    Further information about Rosenblatt (founded in 1989) is available at:  www.rosenblatt.co.uk

·  Further information about Memery Crystal (founded in 1979) is available at:  www.memerycrystal.com

·    Further information about Convex Capital (founded in 2010) is available at:  www.convexcap.com

 

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