6th Jun 2022 12:13
(Alliance News) - IG Design Group PLC on Monday said it has extended the term of its existing banking agreement to March 2024.
Shares in the Bedfordshire, England-based consumer gift packaging company were up 30% to 64.70 pence each in London on Monday morning.
The agreement was signed after the London market close on Wednesday.
As part of the extension, IG Design's facility size has been amended. Its revolving credit facility A has been reduced to USD90 million from USD95 million, while its RCF B has been reduced to a maximum level of GBP92 million from a maximum of GBP130 million.
Further, covenants have been revised for the period ending March 31 2023.
IG Design is required to be within USD10 million of its earnings before interest, tax, depreciation, and amortisation budget at the each quarter end, based on the last twelve-month Ebitda performance at each measurement point.
Also, the company must maintain a minimum liquidity level, which requires the company to have a minimum of USD35 million of headroom to the maximum available facility on a monthly basis.
The directors believe that these amendments "give the group more than sufficient headroom to fund its seasonal working capital requirements over the remaining term of the banking agreement."
Chair Stewart Gilliland added: "We are very pleased to have agreed this extension to our facilities and to have the ongoing support of our banking partners. Our seasonal orderbook remains strong and this revised facility provides us with sufficient funding for our working capital requirements."
By Sophie Rose; [email protected]
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