REG - IWG Plc Regus PLC - H1 2023 Pre-Close and Financing Update

International WorkplaceAnnouncement

29/06/2023 07:00

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RNS Number : 2963E  IWG PLC  29 June 2023

 

 

 

29 June 2023

IWG REFINANCES AND EXTENDS DEBT MATURITY, UPDATES ON OUTLOOK

IWG Plc (the "Company") is pleased to announce an update to its financing and
capital structure prior to H1 2023 results, due to be released on 8 August
2023. This includes having:

·  Extended maturity of its Revolving Credit Facility ("RCF"), resulting in
no Group debt maturing before November 2025;

·  Confirmed of strategy to build Worka and seek to crystalise value through
reducing its ownership stake in the medium term; and

·  Continued to reduce net debt through cash flow generation.

Debt maturity

Summary of IWG debt facilities

 Post update                                                                                         Pre update
 Description                                       Maturity                                          Description                                       Maturity
 £875m RCF facility                                November 2025                                     £750m RCF facility                                March 2025
 £350m (face value) convertible bond 0.5% coupon   December 2025 put option, maturity December 2027  £350m (face value) convertible bond 0.5% coupon   December 2025 put option, maturity December 2027
 £330m acquisition bridge                          Extinguished                                      £330m acquisition bridge, £125m outstanding       September 2023

 

As a result, IWG has no financial debt which matures before November 2025. As
previously announced, pro-forma net financial debt at 31 March 2023 was
£683m.

 

The initial acquisition bridge of £330m in March 2023 has been reduced by
£205m to £125m through cashflow generation and is now extinguished entirely.

 

Apart from the sizing and tenor described above, no material terms, such as
pricing, of the RCF have changed.

 

Outlook

The Company remains cautiously optimistic for the remainder of 2023, and
despite the strengthening of Sterling, management has not changed its
financial expectations for FY 2023.

 

IWG and Worka continue to trade well. IWG remains committed to reducing its
ownership stake in Worka in the medium term.

 

The Company is well-positioned to continue to take advantage of future growth,
its capital-light strategy and year to date has made improvements on all core
KPIs since December 2022.

 

IWG is looking forward to making its H1 2023 results announcement on 8 August
2023.

 

 Further information
 IWG plc                                       Brunswick Tel: + 44 (0) 20 7404 5959
 Mark Dixon, Chief Executive Officer           Nick Cosgrove

 Charlie Steel, Chief Financial Officer        Peter Hesse

 Richard Manning, Head of Investor Relations

 Tel: +44 (0) 7901 763 935

 

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