REG - RBG Holdings PLC - Refinancing and Convex Capital Update

RBG HoldingsAnnouncement

11/12/2023 07:15

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RNS Number : 2567W  RBG Holdings PLC  11 December 2023

11 December 2023

 

RBG Holdings plc

(the "Group", or the "Company")

 

Refinancing and Convex Capital Update

 

Refinancing

RBG Holdings plc (AIM: RBGP), the professional services group, is pleased to
announce that it has renewed and extended its existing borrowing facilities
with its current provider, HSBC.

 

The renewed facility, which runs until 31 December 2025, totals £24.5
million, and consists of a £18m revolving bank facility and a £6.5m term
loan. The renewed facility replaces the £21.5 million of facilities which
were due for renewal in April 2024. The interest rate on the renewed facility
will remain the same as for the previous facilities, paying a margin of 2.4% -
3.15% over the Sterling Overnight Index Average (SONIA), resulting in a
current effective rate of 8.3%.

 

The Board has previously stated that reducing the Group's debt from its
existing level is a priority. A number of actions have already been taken that
will help achieve this, including suspending the dividend policy and exiting
the Company's third-party litigation finance business, LionFish Litigation
Finance Limited.

 

Convex Capital Update

Following its announcement on 31 October 2023, the Group is pleased to confirm
that the Convex Capital transaction mentioned has now completed. Following the
completion of this transaction, the Group's pre-IFRS 16 net debt position is
£22.6 million (as at 8 December 2023).

 

The Company hopes to announce a further update on the progress of other Convex
Capital transactions in its upcoming pre-close trading statement.

 

Kevin McNair, Chief Financial Officer, RBG Holdings, said: "Our new facility
gives the Group and its stakeholders the time and stability needed as we
refocus the Group under its new management team. After a comprehensive
process, we are delighted to be continuing our long-standing relationship with
HSBC who are supportive of our plans.

 

"The completion of the Convex Capital transaction is an encouraging step
forward for our non-legal services business. We are delivering on our promises
and our focus is on our commitment to reduce the Group's debt and restore
value to shareholders."

 

 

Enquiries:

 

 RBG Holdings plc                                                 Via SEC Newgate
 Jon Divers, CEO

 Kevin McNair, CFO

 Singer Capital Markets (Nomad and Broker)                       Tel: +44 (0)20 7496 3000
 Rick Thompson / Alex Bond / James Fischer (Corporate Finance)

Tom Salvesen (Corporate Broking)

 SEC Newgate (Financial Communications)                          Tel: +44 (0)7540 106366
 Tali Robinson / Robin Tozer

                                                                 rbg@secnewgate.co.uk

 

 

About RBG Holdings plc

·    Further information about RBG Holdings plc is available at:
www.rbgholdings.co.uk (http://www.rbgholdings.co.uk)

·    Further information about Rosenblatt (founded in 1989) is available
at:  www.rosenblatt.co.uk (http://www.rosenblatt.co.uk)

·  Further information about Memery Crystal (founded in 1979) is available
at:  www.memerycrystal.com (http://www.memerycrystal.com)

·    Further information about Convex Capital (founded in 2010) is
available at:  www.convexcap.com (http://www.convexcap.com)

 

 

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