Young & Co's Brewery PLC Financing and Liquidity Update (6950M)
13 Mayo 2020 - 1:00AM
UK Regulatory
TIDMYNGA
RNS Number : 6950M
Young & Co's Brewery PLC
13 May 2020
13 May 2020
Information within this announcement is deemed by Young's to
constitute inside information under the Market Abuse Regulation
(EU) No. 596/2014.
Young & Co.'s Brewery, P.L.C.
("Young's" or the "Company")
Financing and Liquidity Update
and
Update on Notice of Results
Notification pursuant to AIM Rule 11
Young's provides a further update in light of the ongoing
Covid-19 situation.
Financing and Liquidity Update
Highlights
-- Issued paper with a nominal value of GBP30 million and a
maturity date of 13 May 2021 under the HM Treasury and the Bank of
England's Covid Corporate Financing Facility
-- In the process of finalising a new GBP50 million syndicated
term loan facility and a new GBP20 million bilateral revolving
credit facility
-- Lending banks have agreed to waive any technical 'cessation
of business' breach of the Company's banking facilities as a result
of the Group's pubs being closed due to the coronavirus
pandemic
-- Lending banks have also agreed in principle to replace the
Company's financial covenant tests at June, September and December
this year and at March next year with a liquidity test
The Company has been confirmed as an eligible issuer for the HM
Treasury and the Bank of England's Covid Corporate Financing
Facility (the "CCFF"). Young's has therefore established a
euro-commercial paper programme for the purpose of issuing paper
through the CCFF. Pursuant to that programme, the Company has
partially accessed the liquidity available to it under the CCFF by
issuing paper with a nominal value of GBP30 million and a maturity
date of 13 May 2021.
The Company has agreed with National Westminster Bank plc
("NatWest") and HSBC UK Bank plc ("HSBC") to a new GBP50 million
syndicated term loan facility, to be split evenly between those two
banks (the "New Syndicated Facility"). Each bank's credit committee
has approved the terms of the facility, which will have an original
maturity date falling on the fifth anniversary of the date the
facility agreement is entered into. The Company will have the
option next year to request an extension of the maturity date by a
further year and will then be able to do the same the following
year. Once the documentation has been completed, the Company
intends to draw down on the facility immediately and repay in full
the March 2021 GBP50 million syndicated facility with the Royal
Bank of Scotland plc and Barclays Bank plc (the "Existing
Syndicated Facility").
The Company is also in the process of finalising a new GBP20
million bilateral revolving credit facility (the "New Bilateral
Facility") with NatWest. The bank's credit committee has approved
the terms of the facility, which will have a maturity date falling
on the first anniversary of the date the facility agreement is
entered into. The Company will have the option later this year to
request an extension of the maturity date by a further six months
and will then be able to do the same again next year. Once the
documentation has been completed, the facility will be available to
be drawn down, as appropriate, to be used for general corporate
purposes.
After the Company has refinanced the Existing Syndicated
Facility via the New Syndicated Facility and has entered into the
New Bilateral Facility, the Company will have in place GBP285
million of funds and committed facilities from its lending banks,
private placement lenders and under the CCFF. In addition to this,
the Company has a GBP10 million overdraft with HSBC.
All the Company's lending banks were supportive of Young's
accessing additional liquidity. They were also agreeable to the
Company refinancing the Existing Syndicated Facility via the New
Syndicated Facility and to the Company strengthening its balance
sheet further by entering into the New Bilateral Facility.
In addition, the Company's lending banks have agreed to waive
any technical 'cessation of business' breach of the Company's
banking facilities as a result of the Group's pubs being closed due
to the coronavirus pandemic. They have also agreed in principle to
replace the Company's financial covenant tests at June, September
and December this year and at March next year with a liquidity
test.
With the Group's strong balance sheet, supplemented by the
actions announced today, the Company's board of directors is
confident that Young's has sufficient liquidity to handle a
prolonged period of closure of its pubs. The board expects the
Company to be in a position to return to profitable growth when
this unprecedented period is at an end and conditions allow.
Update on Notice of Results
The board now expects to issue the Company's preliminary results
announcement for the year ended 30 March 2020 on 4 June 2020,
instead of 21 May 2020. Whilst the Group's work on the year-end
results, and Ernst & Young LLP's audit of them, is progressing
well, a further two weeks will enable completion of the work
required taking into account the disruption to working practices
caused by the coronavirus, and will provide time to complete the
documentation relating to the new loan facilities and the
replacement financial covenant tests.
- Ends -
Anthony Schroeder
Company Secretary
13 May 2020 (06:00 GMT)
Tel: 020 8875 7000
Contacts:
Young & Co.'s Brewery, P.L.C.
020 8875 7000
Stephen Goodyear, Chairman / Patrick Dardis, Chief Executive
J.P. Morgan Cazenove (AIM nominated adviser and joint broker) 020 7742 4000
James Mitford / Ameya Velhankar
Panmure Gordon (joint broker) 020 7886 2500
Erik Anderson
MHP Communications 07551 170 451
Tim Rowntree / Alistair de Kare-Silver youngs@mhpc.com
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END
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