Revolution Bars Group Banking Facilities update (8366N)
May 26 2020 - 1:01AM
UK Regulatory
TIDMRBG
RNS Number : 8366N
Revolution Bars Group
26 May 2020
Revolution Bars Group plc (LSE: RBG)
Banking Facilities update
Liquidity for the foreseeable future
Revolution Bars Group plc (the "Group"), a leading UK operator
of 74 premium bars, trading under the Revolution and Revolución de
Cuba brands, is pleased to announce an extension to its debt
facilities, which the Board is confident will provide the Group
with sufficient liquidity for the foreseeable future.
As announced on 14 April 2020, the Group's lenders, NatWest,
agreed to increase the Group's Revolving Credit Facility (the
"Facility") from GBP21.0m to GBP30.0m until 31 August 2020,
following which it would step down to GBP24.0m. NatWest also agreed
to waive all financial covenant tests at March 2020 and June
2020.
The Board is pleased to announce that, subject to final
documentation, NatWest has agreed to further increase the Group's
overall debt facilities, utilising the UK Government's CLBILS.
NatWest will provide the Group with a GBP16.5m term loan (the "Term
Loan") and the Facility will remain at GBP21.0m (together the
"Revised Facilities"). The Term Loan will mature on 30 June 2023,
following which it will need to be repaid or refinanced. It will be
amortised by GBP1m per annum with the first repayment occurring in
June 2021. The Facility has been extended by six months to June
2022, following which it will also need to be refinanced or repaid.
The Facility will also be reduced by GBP1m per annum, with the
first reduction occurring in June 2021. With the Revised Facilities
in place, the Group will have total debt facilities of GBP37.5m
until June 2021 then reducing to GBP35.5m until at least June 2022.
The Revised Facilities are being provided on normal commercial
terms.
The Group's net debt position is currently GBP22m. With the
Revised Facilities in place, the Board is confident that the Group
will have sufficient liquidity for the foreseeable future, even
taking into account the Board's downside COVID-19 trading
scenario.
As part of the Revised Facilities, NatWest have also agreed to
amend the Group's financial covenants to be based solely on cash
headroom, set at a level based on the Group's downside COVID-19
trading scenario. In accordance with the terms and conditions of
CLBILS, the payment of dividends by the Group is prohibited whilst
the term loan remains outstanding.
The Board continues to monitor and assess the Group's current
and future financial position and all financing options available
to it and will update further when appropriate.
Rob Pitcher, CEO, comments:
"Again, we welcome and are delighted with the additional support
from NatWest. They continue to act as a true partner to our
business and this decisive action will enable us to emerge from
this crisis in a financially stable position.
"When restrictions are lifted, we will re-open with much caution
- prioritising the health and safety of our employees and guests
above all else. However, with the security of a stable financial
position and underpinned by our young guest base, we believe that
the Group is well placed to return to good levels of trading
reasonably quickly."
26 May 2020
Revolution Bars Group plc Tel: 0161 330 3876
Rob Pitcher, CEO
Mike Foster, CFO
Peel Hunt LLP, Joint Broker Tel: 020 7418 8900
George Sellar / Andrew Clark (Corporate
Finance)
Al Rae / Sohail Akbar (ECM)
FinnCap, Joint Broker Tel: 020 7220 0500
Matt Goode / Simon Hicks (Corporate
Finance)
Tim Redfern / Richard Chambers
(ECM)
Instinctif (Financial PR) Tel: 07831 379122
Matt Smallwood
Jack Devoy
This announcement contains inside information within the meaning
of the Market Abuse Regulation. The person responsible for
arranging release of this announcement on behalf of Revolution Bars
Group plc is Mike Foster, Chief Financial Officer.
This information is provided by RNS, the news service of the
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END
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