REG - Dialight PLC - Statement re Update on Financing

DialightAnnouncement

18/09/2023 12:30

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RNS Number : 7904M  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: +44 (0)203 058 3542

Fariyal Khanbabi - Group Chief Executive

Richard Allan - General Counsel & Company Secretary

 

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