REG - IG Design Group PLC - New Debt Facilities

IG DesignAnnouncement

05/06/2023 14:30

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RNS Number : 6862B  IG Design Group PLC  05 June 2023

5 June 2023

IG Design Group plc

('Design Group' or the 'Group')

New Debt Facilities

IG Design Group plc, one of the world's leading designers, innovators and
manufacturers of Gift Packaging, Celebrations, Craft & Creative Play,
Stationery, Gifting and related product categories, announces the successful
refinancing of its lending facilities.

 

The Group has successfully negotiated a three-year refinancing with HSBC and
NatWest banks for US$125m and is structured as an Asset Backed Lending ("ABL")
arrangement secured with an all-assets lien in the USA and an all-assets
security in the UK.  The Group has also extended its overdraft facility
provided by HSBC. This new facility replaces the previous revolving credit
facilities originally agreed upon in 2019.

 

The new facility carries an initial bank margin of 1.75% to 2.25%, based on
average excess availability (plus 0.1% spread adjustment) over the
forward-looking term rate based on the US Secured Overnight Financing Rate
("SOFR"), which is lower than the margins on the 2019 facilities.

 

The Board believes that the new ABL facility, which flexes in line with the
receivables in the USA, provides more than sufficient headroom to fund the
Group's working capital needs over the period of the facility.

 

The Group intends to announce its full year results on 20 June 2023, including
full details of the new financing arrangement.

 

Stewart Gilliland, Chair, commented:

 

"We are pleased to have completed this planned refinancing.  The continued
support of our key banking partners is greatly appreciated and shows their
confidence in the Group's prospects."

 

 

For further information, please contact:

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

 Stewart Gilliland, Chair

 Paul Bal, CEO & CFO
 Canaccord Genuity Limited (Nomad and Broker)  Tel:  +44 (0)20 7523 8000

 Bobbie Hilliam

 Alma PR                                       Tel:  +44 (0)20 3405 0209

 Sam Modlin                                    designgroup@almapr.co.uk (mailto:designgroup@almapr.co.uk)

 Josh Royston

 Pippa Crabtree

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310.Upon the publication
of this announcement, this inside information is now considered to be in the
public domain.

 

 

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