REG - Card Factory PLC - Refinancing

Card FactoryAnnouncement

21/04/2022 07:00

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RNS Number : 8208I  Card Factory PLC  21 April 2022

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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
                                    +44 (0)
207 353 4200

James Macey White / Alison
Lygo
cardfactory@tulchangroup.com (mailto:cardfactory@tulchangroup.com)

 

 

 

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