24th Jun 2019 11:39
(Alliance News) - CentralNic Group PLC on Monday announced the successful placing of its EUR50 million senior secured bonds and said it expects to beat market consensus in 2019.
Shares in CentralNic were up 3.9% at 66.00 pence in late morning trade.
The internet domain name retailer has completed its oversubscribed EUR50 million debut bond issue, which matures July 2023.
The bonds have a coupon of three-month EURIBOR plus 7% per annum with a floor at 0%. Interest payments are quarterly and Pareto Securities was sole bookrunner.
CentralNic intends for the bond issue settlement date to be in early July 2019, with funds used to repay existing liabilities and to buy domain name reselling platform TPP Wholesale, which has a headline AUD24 million consideration - around USD17 million. In 2018, TPP Wholesale posted revenue of AUD17.0 million and a profit of AUD3.9 million.
In the first four months of the year, CentralNic has experienced strong trading, it said, and it now expects to pull ahead of market consensus. For the four months to April 30, CentralNic's revenue was around USD33.8 million, up from USD9.0 million for the same period of 2018.
The firm's earnings before interest, depreciation, taxation, and amortisation for the fourth months was approximately USD5.4 million, rising from USD400,000.
As at April 30, the firm's net debt - prepaid charges excluded - was roughly USD7.6 million.
"We are delighted to have completed our debut bond issue, which was oversubscribed and supported by a wide range of debt capital markets investors globally. This establishes CentralNic as an issuer and, in combination with our strong support among equity market investors, offers us considerable financial flexibility, over the medium term, to pursue our strategic growth objectives," said CentralNic Chief Executive Ben Crawford.
"Meanwhile, the pleasing organic growth of our existing recurring business continues to provide a solid basis to include this increased leverage into our financial structure - allowing us to continue making earnings accretive acquisitions while maintaining prudent debt ratios," Crawford added.
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