RCS - Literacy Capital PLC - Increase in credit facility limit to £50 million

Literacy CapitalAnnouncement

15/04/2025 07:02

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RNS Number : 9792E  Literacy Capital PLC  15 April 2025

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any
member state of the European Economic Area, Canada, Australia, Japan or the
Republic of South Africa.

 

 

15 April 2025

Literacy Capital plc

 

Increase in credit facility limit from £40 million to £50 million

 

Literacy Capital plc ("Literacy", "BOOK" or the "Company"), a listed
investment trust primarily focused on investing directly into private
businesses based in the UK, today announces that it has finalised an increase
in the limit of its Revolving Credit Facility ("RCF") from £40 million to
£50 million, with its existing lender OakNorth Bank plc ("OakNorth").

 

The existing rates of interest and term (expiry in September 2027) are
unchanged. This increase in limit is not expected to increase costs for
Literacy but provides additional flexibility from a liquidity perspective for
the Company. The only covenant change resulting from this amendment is the
minimum net asset value increasing from £200 million to £225 million.

 

Drawings under the RCF as of today amount to £35 million. The Company's
Borrowing Policy permits "indebtedness of up to a maximum of 20 per cent of
its Net Asset Value". However, gearing is expected to remain comfortably below
this and it remains the case that BOOK's LTV is not expected to exceed 10% for
a sustained period.

 

Richard Pindar, CEO of BOOK's Investment Manager, commented: "We are pleased
to agree this extension with OakNorth, who have been very supportive partners.
This additional flexibility will allow Literacy to provide further support to
its portfolio companies, as well as allowing it to generate most value for
shareholders from the investments it holds".

 

-ENDS-

 

 

For further information, please contact:

 

 Literacy Capital plc / Book Asset Management LLP:  +44 (0) 20 3960 0280

 Richard Pindar / Aasha Tailor
                                                    +44 (0) 7817 458804

 MHP Group:                                         book@mhpgroup.com

 Reg Hoare / Ollie Hoare / Matthew Taylor

 Singer Capital Markets Securities Limited:         +44 (0) 20 7496 3000

 Alaina Wong

 

About Literacy Capital plc

 

Literacy Capital (BOOK.L) is a closed-end investment company that was
co-founded by Paul Pindar and Richard Pindar in 2017 with £54m of capital.
Literacy listed on the London Stock Exchange in June 2021, before gaining
Investment Trust status on 1 April 2022. The Company focuses on opportunities
to invest for the long-term in growing private businesses where a clear route
to creating additional value can be seen with its support. The fund structure
is evergreen, allowing it to be more flexible and to accommodate the wishes or
needs of founders.

 

It also has a unique charitable objective, to donate 0.5% of annual NAV to
charities focused on improving UK literacy in children. £11.2 million has
been donated or reserved for donation to charities since the trust's creation
in 2017. For more information, please visit our website:
www.literacycapital.com
(https://protect.checkpoint.com/v2/___http:/www.literacycapital.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzphNjUwYWQxZDUwODhlOWQ3MmI2NDdhYTkzOTJmNjA0Mzo2OmViNjk6ZTY1ZGRjZjU4MjE2YTJmMjU5YmYzMWZjOTYwMDBjMTI4MzY0YTIxYzQ1YzZkODczYzMwNzQ1YzM1YzI0NTg5YTpwOlQ6Tg)
.

 

A copy of this announcement will be available on the Company's website at
www.literacycapital.com
(https://protect.checkpoint.com/v2/___http:/www.literacycapital.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzphNjUwYWQxZDUwODhlOWQ3MmI2NDdhYTkzOTJmNjA0Mzo2OmViNjk6ZTY1ZGRjZjU4MjE2YTJmMjU5YmYzMWZjOTYwMDBjMTI4MzY0YTIxYzQ1YzZkODczYzMwNzQ1YzM1YzI0NTg5YTpwOlQ6Tg)
.

 

The information contained in this announcement regarding the Company's
investments has been provided by the relevant underlying portfolio company and
has not been independently verified by the Company. The information contained
herein is unaudited.

 

This announcement is for information purposes only and is not an offer to
invest. All investments are subject to risk.  Past performance is no
guarantee of future returns.  Prospective investors are advised to seek
expert legal, financial, tax and other professional advice before making any
investment decision.  The value of investments may fluctuate.  Results
achieved in the past are no guarantee of future results. Neither the content
of the Company's website, nor the content on any website accessible from
hyperlinks on its website for any other website, is incorporated into, or
forms part of, this announcement nor, unless previously published by means of
a recognised information service, should any such content be relied upon in
reaching a decision as to whether or not to acquire, continue to hold, or
dispose of, securities in the Company.

 

LEI: 2549006P3DFN5HLFGR54

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