Kape Technologies - New Long Term Bank Facility
01/11/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221101:nRSA8211Ea&default-theme=true
RNS Number : 8211E Kape Technologies PLC 01 November 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
1 November 2022
Kape Technologies plc
("Kape", the "Group" or the "Company")
New Long Term Bank Facility
New facilities support Kape's growth plans and reduce leverage below 1x
Kape (AIM: KAPE), the digital security and privacy software business,
announces it has entered into an agreement for new bank facilities with its
existing lenders Bank of Ireland, Barclays, Citizens Bank, BNP Paribas, Citi
Commercial Bank, and Leumi Bank, and two new banks, HSBC and Credit Suisse,
who will join the enlarged syndicate. This new banking facility will replace
the existing debt facilities, immediately realising approximately $20 million
in net debt reduction, approximately $8 million of savings on financing costs
and providing long term financing to support Kape's expansion.
The new debt facilities comprise a $275.0 million senior secured term facility
(the "Term Facility"), a $150.0 million revolving credit facility and an
uncommitted $75.0 million facility (together the "New Debt Facilities").
The New Debt Facilities will replace all Kape's existing loan facilities,
including the deferred consideration facility arrangements put in place with
TS Next Level Investments Limited (an affiliate of Unikmind Holdings Limited,
the Company's majority shareholder) at the time of the acquisition of
ExpressVPN (the "Deferred Consideration Facility").
As well as providing long term financing to better support Kape's ambitious
growth plans, the New Debt Facilities will allow Kape to exercise its option
under the prepayment agreement, announced on 12 September 2022, to prepay at a
discount the $345.0 million of deferred consideration for the acquisition of
ExpressVPN. The prepayment is expected to result in an immediate reduction in
the Company's net debt of approximately $20.0 million. In addition, the
termination of the Deferred Consideration Facility and the associated
commitment fee, which accrues at 3.50% per annum, is expected to result in
immediate savings of approximately $8.0 million.
The New Debt Facilities have a four-year term. Funding is expected to take
place this week. The Term Facility is subject to 10% annual amortisation and
carries an opening margin of 2.75pc above the applicable reference rate per
annum. The margin will vary over the term of the facilities based on the
Group's adjusted leverage each quarter.
Following the refinancing, the Group's adjusted leverage expected by the end
of 2022 will be below 1x.
Oded Baskind, Chief Financial Officer of Kape, commented:
"We are pleased to have received such strong support from our existing
partners Bank of Ireland, Barclays, Citizens Bank, BNP Paribas, Citi
Commercial Bank, and Leumi Bank, as well as the new banks joining the
syndicate, HSBC and Credit Suisse; this is a strong vote of confidence in
Kape's management, business model and growth trajectory.
The New Debt Facilities will provide the business with long term financing,
transforming Kape's ability to further support our ambitious growth plans as
well as immediately realise approximately $20.0 million in net debt reduction
and approximately $8.0 million of savings on financing costs. The New Debt
Facilities will also provide additional firepower to continue our profitable
growth path in the digital privacy and security space."
Enquiries:
Kape Technologies plc via Vigo Consulting
Ido Erlichman, Chief Executive Officer
Oded Baskind, Chief Financial Officer
Shore Capital (Nominated Adviser & Broker) +44 (0)20 7408 4090
Toby Gibbs / Mark Percy / James Thomas / Iain Sexton
Stifel Nicolaus Europe Limited (Joint Broker) +44 (0) 20 7710 7600
Alex Price / Brad Topchik / Alain Dobkin / Richard Short
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0237
Jeremy Garcia / Kendall Hill
kape@vigoconsulting.com
This announcement relates to the disclosure of information that qualified or
may have qualified as inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018.
About Kape
Kape is a leading 'privacy-first' digital security software provider to
consumers. Through its range of privacy and security products, Kape focuses on
protecting consumers and their personal data as they go about their daily
digital lives.
Kape has over 7 million paying subscribers, supported by a team of over 1,000
people across ten locations worldwide. Kape has a proven track record of
revenue and EBITDA growth, underpinned by a strong business model which
leverages our digital marketing expertise.
Through its subscription-based platform, Kape has fast established a highly
scalable SaaS-based operating model, geared towards capitalising on the vast
global consumer digital privacy market.
www.kape.com (http://www.kape.com/)
Twitter (https://twitter.com/Kape_com) LinkedIn
(https://www.linkedin.com/company/kape-technologies/)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END MSCFFFLLIALLVIF