REG - Safestay PLC - New Debt Facilities

SafestayAnnouncement

29/01/2024 07:15

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RNS Number : 1276B  Safestay PLC  29 January 2024

29 January 2024

 

Safestay plc

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

Successful Debt Refinancing Agreed With HSBC

Safestay (AIM: SSTY), the owner and operator of an international brand of
contemporary hostels, is pleased to announce, that it has refinanced its
existing borrowings into a single £16 million Term Loan and added a new £2.5
million Revolving Credit Facility ("RCF") to support future growth plans. The
new Term Loan and RCF are for 5 years and were provided by existing lender
HSBC.

The Term Loan interest rates are £4.4 million at 3.955%, £10 million at
SONIA but capped at 4.75% with a floor of 3% and £1.6 million at SONIA, all
with an additional margin of 2.6%. The RCF has a rate of SONIA plus a margin
of 2.85%. The Term Loan is repayable at £0.1 million per quarter from March
2025 together with a final payment at completion. Interest on both the Term
Loan and RCF is payable quarterly from March 2024.

The Term Loan replaces the previous interest only £12,745,000 facility with
HSBC and enables the repyament of the outstanding CBILS loan of £3 million
which carried a signifcantly higher interest rate.

Larry Lipman, Chairman of Safestay, said "We are pleased to have completed
this refinancing which increases the Group's overall funding capacity
providing additional flexibility and enabling additional investment into the
development and growth of our business. We are grateful to HSBC who continues
to be a long-term and strong supporter of Safestay."

 Enquries
 Safestay plc                                +44 (0) 20 8815 1600
 Larry Lipman

 Liberum Capital Limited
 (Nominated Adviser and Broker)              +44 (0) 20 3100 2000
 Andrew Godber/Edward Thomas / Josh Borlant

 Novella                                     +44 (0) 20 3151 7008
 Tim Robertson
 Safia Colebrook

 

For more information visit our:

Website www.safestay.com (http://www.safestay.com)

Vox Markets page https://www.voxmarkets.co.uk/company/SSTY/news/
(https://www.voxmarkets.co.uk/company/SSTY/news/)

Instagram page www.instagram.com/safestayhostels/
(http://www.instagram.com/safestayhostels/)

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