Kape Technologies PLC New Long Term Bank Facility (8211E)
November 01 2022 - 2:00AM
UK Regulatory
TIDMKAPE
RNS Number : 8211E
Kape Technologies PLC
01 November 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
1 November 2022
Kape Technologies plc
("Kape", the "Group" or the "Company")
New Long Term Bank Facility
New facilities support Kape's growth plans and reduce leverage
below 1x
Kape (AIM: KAPE), the digital security and privacy software
business, announces it has entered into an agreement for new bank
facilities with its existing lenders Bank of Ireland, Barclays,
Citizens Bank, BNP Paribas, Citi Commercial Bank, and Leumi Bank,
and two new banks, HSBC and Credit Suisse, who will join the
enlarged syndicate. This new banking facility will replace the
existing debt facilities, immediately realising approximately $20
million in net debt reduction, approximately $8 million of savings
on financing costs and providing long term financing to support
Kape's expansion.
The new debt facilities comprise a $275.0 million senior secured
term facility (the "Term Facility"), a $150.0 million revolving
credit facility and an uncommitted $75.0 million facility (together
the "New Debt Facilities").
The New Debt Facilities will replace all Kape's existing loan
facilities, including the deferred consideration facility
arrangements put in place with TS Next Level Investments Limited
(an affiliate of Unikmind Holdings Limited, the Company's majority
shareholder) at the time of the acquisition of ExpressVPN (the
"Deferred Consideration Facility").
As well as providing long term financing to better support
Kape's ambitious growth plans, the New Debt Facilities will allow
Kape to exercise its option under the prepayment agreement,
announced on 12 September 2022, to prepay at a discount the $345.0
million of deferred consideration for the acquisition of
ExpressVPN. The prepayment is expected to result in an immediate
reduction in the Company's net debt of approximately $20.0 million.
In addition, the termination of the Deferred Consideration Facility
and the associated commitment fee, which accrues at 3.50% per
annum, is expected to result in immediate savings of approximately
$8.0 million.
The New Debt Facilities have a four-year term. Funding is
expected to take place this week. The Term Facility is subject to
10% annual amortisation and carries an opening margin of 2.75pc
above the applicable reference rate per annum. The margin will vary
over the term of the facilities based on the Group's adjusted
leverage each quarter.
Following the refinancing, the Group's adjusted leverage
expected by the end of 2022 will be below 1x.
Oded Baskind, Chief Financial Officer of Kape, commented:
"We are pleased to have received such strong support from our
existing partners Bank of Ireland, Barclays, Citizens Bank, BNP
Paribas, Citi Commercial Bank, and Leumi Bank, as well as the new
banks joining the syndicate, HSBC and Credit Suisse; this is a
strong vote of confidence in Kape's management, business model and
growth trajectory.
The New Debt Facilities will provide the business with long term
financing, transforming Kape's ability to further support our
ambitious growth plans as well as immediately realise approximately
$20.0 million in net debt reduction and approximately $8.0 million
of savings on financing costs. The New Debt Facilities will also
provide additional firepower to continue our profitable growth path
in the digital privacy and security space."
Enquiries:
Kape Technologies plc via Vigo Consulting
Ido Erlichman, Chief Executive Officer
Oded Baskind, Chief Financial Officer
Shore Capital (Nominated Adviser & Broker)
Toby Gibbs / Mark Percy / James Thomas / +44 (0)20 7408
Iain Sexton 4090
Stifel Nicolaus Europe Limited (Joint Broker)
Alex Price / Brad Topchik / Alain Dobkin +44 (0) 20 7710
/ Richard Short 7600
Vigo Consulting (Financial Public Relations)
Jeremy Garcia / Kendall Hill +44 (0)20 7390
kape@vigoconsulting.com 0237
This announcement relates to the disclosure of information that
qualified or may have qualified as inside information for the
purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018.
About Kape
Kape is a leading 'privacy-first' digital security software
provider to consumers. Through its range of privacy and security
products, Kape focuses on protecting consumers and their personal
data as they go about their daily digital lives.
Kape has over 7 million paying subscribers, supported by a team
of over 1,000 people across ten locations worldwide. Kape has a
proven track record of revenue and EBITDA growth, underpinned by a
strong business model which leverages our digital marketing
expertise.
Through its subscription-based platform, Kape has fast
established a highly scalable SaaS-based operating model, geared
towards capitalising on the vast global consumer digital privacy
market.
www.kape.com
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