REG - Smiths News PLC - Extension and Amendment of Financing Agreement

Smiths NewsAnnouncement

23/12/2021 07:00

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RNS Number : 5576W  Smiths News PLC  23 December 2021

 

23 December 2021

 

 

 

This document contains inside information

 

Smiths News plc

("the Company")

 

Extension and amendment of Financing Agreement

 

Smiths News plc is pleased to announce it has signed an agreement to extend
and amend its current banking facilities to 31 August 2025 (the "Agreement"),
from the previous maturity date of November 2023. The Agreement has been made
with a syndicate of banks comprising existing lenders HSBC, Barclays,
Santander and Clydesdale.

 

The Company's banking facilities will now comprise a £60.0m amortising term
loan and a revolving credit facility with an initial limit of £30.0m. The new
facilities have been negotiated following the ongoing deleveraging of the
business and increases the existing cap on dividends and distributions from
£6m to £10m for each financial year during the term of the Agreement, which
will enable the business to increase returns to shareholders.

 

These facilities will amortise down to a maximum of £41.5m over the loan
period. The facilities are available at an initial minimum margin of 4.25%
over SONIA, reducing to 4% after 6 months.

 

Jonathan Bunting, Chief Executive Officer of Smiths News, said:

"We are pleased to have reached this agreement which reflects the excellent
progress we have made in strengthening the Company's underlying finances and
helps to ensure that all stakeholders will benefit from our ongoing success.
Looking ahead, we expect to continue to reduce bank net debt and be below 1x
Adjusted pre-IFRS16 EBITDA at the half year."

 

Enquiries:

 

 Smiths News PLC

 Jonathan Bunting, Chief Executive Officer                         Via Buchanan

 Paul Baker, Chief Financial Officer
 www.corporate.smithsnews.co.uk

 Buchanan

 Richard Oldworth / Jamie Hooper / Toto Berger                     020 7466 5000

 smithsnews (mailto:smithsnews@buchanan.uk.com) @buchanan.uk.com
 (mailto:smithsnews@buchanan.uk.com)

 www.buchanan.uk.com (http://www.buchanan.uk.com)

 

 

 

About Smiths News PLC

 

Smiths News PLC and its core business, Smiths News, is the UK's largest
newspaper and magazine wholesaler, with an approximate 55 per cent. market
share. It distributes newspapers and magazines on behalf of the major national
and regional publishers, delivering to approximately 24,000 customers across
England and Wales on a daily basis. The speed of turnaround and the density of
Smiths News' coverage is critical to one of the world's fastest physical
supply chains.

 

Ancillary businesses include: Dawson Media Direct (DMD) which supplies
airlines and travel points in the UK; and Instore, which offers field
marketing services to retailers and suppliers across the UK.

 

 

 

Person responsible for arranging release of this announcement:

Stuart Marriner, General Counsel & Company Secretary

Smiths News plc

Rowan House

Cherry Orchard North

Kembrey Park

Swindon

SN2 8UH

email: cosec@smithsnews.co.uk

LEI: 2138004O33ONVOOQXB02

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