REG - IG Design Group PLC - Bank Amendment & Extension

IG DesignAnnouncement

06/06/2022 07:00

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RNS Number : 7807N  IG Design Group PLC  06 June 2022

6 June 2022

IG Design Group plc

 

('Design Group' or the 'Company')

 

Bank Amendment & Extension

 

IG Design Group plc is pleased to announce that the Company has extended the
term of its existing banking agreement to 31 March 2024. The agreement was
signed after market close on 1 June 2022.

 

As part of this extension, covenants have been revised for the period to 31
March 2023 and the facility size has been amended as follows:

-       RCF A has reduced from $95 million to $90 million

-       RCF B has reduced from a maximum level of £130 million to a
maximum of £92 million

 

The Directors believe these amendments continue to give the Group more than
sufficient headroom to fund its seasonal working capital requirements over the
remaining term of the banking agreement. There are no other changes to the
banking facility limits.

 

The revised covenants, which operate for a maximum period to 31 March 2023 are
as follows:

-     Minimum EBITDA performance, measured quarterly at the end of June,
September, December and March, which requires the Group to be within $10
million of its EBITDA budget at each quarter end, based on the last
twelve-month EBITDA performance at each measurement point

-    Minimum liquidity level, which requires the Group to maintain a minimum
of $35 million of headroom to the maximum available facility on a monthly
basis

 

From April 2023 the Group will revert to the previous covenants, as detailed
in the Group's 2021 Annual Accounts, being EBITDA leverage and interest
cover.

 

The amendment also stipulates that any dividends to be paid by the Group
during the remaining term of the agreement will require majority lender
approval. Furthermore, the bank lending margin has increased to 250 bps,
rising to 300 bps from 1 June 2023. Banking and legal fees associated with the
amendment and extension of the facility totalled c.$1 million.

 

Stewart Gilliland, Chair, commented:

"We are very pleased to have agreed this extension to our facilities and to
have the ongoing support of our banking partners. Our seasonal orderbook
remains strong and this revised facility provides us with sufficient funding
for our working capital requirements."

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 IG Design Group plc                            Tel: +44 (0)1525 887310

 Giles Willits, Director

 Canaccord Genuity Limited (NOMAD and Broker)   Tel: +44 (0)20 7523 8000

 Bobbie Hilliam - NOMAD

 Alex Aylen - Sales

 Alma PR                                        Tel: +44 (0)20 3405 0205

 Rebecca Sanders-Hewett

  Susie Hudson

 Sam Modlin

 

About IG Design Group plc

IG Design Group plc, the largest consumer gift packaging business in the
world, is a designer, innovator and manufacturer of products that help people
celebrate life's special occasions. Design Group works with more than 11,000
customers in over 80 countries throughout the UK, Europe, Australia and the
USA.

Its products are found in over 210,000 retail outlets, including several of
the world's biggest retailers, for example Walmart, Target, Amazon, Costco,
Lidl and Aldi. Its brand, Tom Smith, also holds the Royal Warrant for the
supply of Christmas crackers and Christmas wrapping paper to the Royal family.
Design Group is a diverse business operating across multiple regions,
categories, seasons and brands.

Its five major product categories are: Celebrations, Gifting, Craft &
creative play, Stationery and 'Not-for-resale' consumables. It offers
customers a full end-to-end service from design through to distribution,
offering both branded and bespoke products from the value-focused through to
the higher-margin ends of the market.

The Company was admitted to the Alternative Investment Market of the London
Stock Exchange in 1995 under the name 'International Greetings plc' and
rebranded to IG Design Group plc in 2016. For further information please
visit www.thedesigngroup.com.

 

 

 

 

 

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