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contained in this announcement is restricted and is not for
publication, release or distribution in the United States of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.
This announcement contains inside
information.
23 September 2024
Literacy Capital plc
Refinancing and extension of the fund's
Revolving Credit Facility
Literacy Capital plc ("Literacy", "BOOK" or the
"Company"), a listed investment trust primarily focused on
investing directly into private, UK-based businesses, announces a
new Revolving Credit Facility ("RCF") with OakNorth Bank plc
("OakNorth"):
·
Literacy has replaced its existing £30m RCF, which was due to
expire in December 2024, with a new facility provided by
OakNorth.
· The
new RCF has a three-year term, which will expire in September 2027,
and provides Literacy with up to £40m of funding. £30m is fully
committed, with an incremental £10m also available, which Literacy
can utilise during the life of the RCF.
· The
new RCF has several benefits for Literacy and its shareholders. It
extends the term of the fund's RCF until 2027, whilst also
providing additional capital and flexibility, at a lower cost than
the existing facility.
Commenting on
the new debt facility, CEO of BOOK's investment manager, Richard
Pindar, said:
"We are
pleased to agree a new debt facility for the fund, which will
support Literacy and its investment activity over the medium term
to continue delivering leading NAV performance and shareholder
returns. It is testament to the maturity and growth achieved by
Literacy that several competitive proposals were received from
lenders, all of which offered more attractive terms than the
original facility put in place in 2021.
We are
encouraged by the large number of high-quality founder-led
businesses in the UK and we continually appraise these new
investment opportunities. We also continue to assess options
regarding re-financing or selling portfolio companies to generate
cash and recycle capital into newer
investments."
Debt
Refinance
Literacy has refinanced the fund's existing £30m
RCF facility with Investec Bank plc. The new facility, provided by
OakNorth, offers additional capacity (given its £40m limit) and
flexibility for Literacy to continue its investment
activity.
We are grateful for the support provided by
Investec since 2021, which helped Literacy to deliver its leading
NAV performance and returns for shareholders, during the life of
this facility. We appreciate the speed with which OakNorth have
completed this transaction and look forward to working together
over the next three years.
The new RCF has a three-year term, meaning it
expires in September 2027, providing a solid foundation for
Literacy to continue making new investments and to support the
existing portfolio. The cost (including margin, non-utilisation
fees and arrangement fees) of the new facility is lower than the
one that it replaces, whilst it also has greater flexibility for
Literacy.
The loan-to-value ("LTV") financial covenant
remains unchanged at 20%. The Company expects gearing to remain
conservative throughout the term of this facility and it is
considered unlikely that the LTV would exceed 10% for a sustained
period of time.
-ENDS-
For further
information, please contact:
Literacy
Capital plc / Book Asset Management LLP
Tom Vernon / Richard Pindar
+44 (0) 20 3960 0280
MHP
Group
Reg Hoare / Ollie Hoare / Matthew
Taylor
book@mhpgroup.com
+44 (0) 7817 458804 / + 44 (0) 7827
662831
Singer Capital
Markets Securities Limited
Robert Peel
+44 (0) 20 7496 3000
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's Main Market 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.
It also has a unique charitable objective, to
donate 0.9% of annual NAV to charities focused on improving UK
literacy in children. £10.0 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.
A copy of this announcement will be available on
the Company's website at
www.literacycapital.com.
LEI: 2549006P3DFN5HLFGR54