REG - Inspired PLC - Refinancing of existing revolving credit facility

InspiredAnnouncement

14/11/2023 07:15

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RNS Number : 3048T  Inspired PLC  14 November 2023

14 November 2023

Inspired plc

("Inspired" or the "Group")

 

Refinancing of existing £60.0 million revolving credit facility

 

Inspired (AIM: INSE), a leading technology enabled service provider supporting
businesses in their drive to reduce energy consumption, deliver net-zero,
control energy costs and manage their response to climate change, has entered
into a new £60.0 million revolving credit facility agreement (the "Facility")
with Santander UK plc and Bank of Ireland plc (the "Banks"), replacing its
current £60.0 million facility ("Existing Facility") with the Banks which was
due to mature in October 2024.

 

Summary of the Facility

 ·             Three-year term until October 2026 with options to enable the Group to extend
               the term until October 2028.
 ·             Size of the Facility is the same as the Existing Facility, £60 million, with
               an additional £25.0 million accordion option.
 ·             Reaffirmation of the long-term support from Santander and Bank of Ireland, who
               have been working with the Group since 2013 and 2019 respectively.
 ·             Covenants:
               -                                         Interest Cover* is not to be less than 4.00:1.00 during the term of the
                                                         Facility; and
               -                                         Adjusted Net Leverage** is increased covenant headroom to not exceed 2.75:1.00
                                                         initially with covenant ratio tapering to 2.00:1.00 in the final year of the
                                                         initial three-year term, in line with the Board's ambition to reduce Adjusted
                                                         Leverage to below 1.00:1.00.
 ·             Margin spread over SONIA is broadly in line with the Existing Facility
               reflecting the current interest rate environment and  the margin scales down
               according to the level of Adjusted Net Leverage, aligning to the Board's
               ambition to reduce Adjusted Net Leverage significantly over the term of the
               facility.

 

Commenting on the Facility Paul Connor, Chief Financial Officer of Inspired,
said: "We look forward to continuing our relationship with both Santander and
Bank of Ireland. Our longstanding relationship with them has been instrumental
in the growth of Inspired, and the Board greatly values their ongoing support.

"The Facility continues to provide the Group with the headroom and flexibility
to execute on our organic growth strategy as we seek to capitalise on the
substantial opportunity within the Optimisation and ESG divisions. The
Facility has been structured to align with the Board's focus on cash
generation and ambition to reduce adjusted leverage to below 1.00x of Adjusted
EBITDA."

Note

*Interest Cover means the ratio of Adjusted EBITDA to net finance charges in
respect of any Relevant Period

**Adjusted Net Leverage means, the ratio of total net debt on the last day of
that Relevant Period to Adjusted EBITDA in respect of that Relevant Period.

 

Enquiries:

 

 Inspired Energy plc

 Mark Dickinson, Chief Executive Officer     +44 (0) 1772 689250

 Paul Connor, Chief Financial Officer        www.inspiredplc.co.uk (http://www.inspiredenergy.co.uk)

 David Cockshott, Chief Commercial Officer

 Shore Capital (Nomad and Joint Broker)       +44 (0) 20 7408 4090

 Patrick Castle

 James Thomas

 Rachel Goldstein

 Liberum (Joint Broker)                      +44 (0) 20 7418 8900

 Edward Mansfield

 Satbir Kler

 Alma                                        +44 (0) 20 3405 0205

 Justine James                               +44 (0) 7525 324431

 Hannah Campbell                             inspired@almastrategic.com (mailto:inspired@almastrategic.com)

 Will Ellis Hancock

 

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