18th Sep 2023 21:51
Dialight PLC - London-based electronics company specialising in LED lighting - Engages in talks with lender HSBC to secure additional covenant flexibility to support the business in the near term, given the current volatility in market conditions. Explains company's financing comprises a USD34 million revolving credit facility with HSBC, which matures in July 2025 and has an option for two one-year extensions. Says HSBC has agreed to vary the interest cover covenant for the September 2023 test period from 4.0x to 2.5x.
Further, says the group has initiated a transformation plan designed to materially improve financial performance over the medium term. As part of funding review, plans to sell assets and businesses it determines as non-core. However, says the timing and terms of any potential divestment are uncertain. Consequently, says the board is intending to engage with key shareholders to explore undertaking an equity fundraising with a view to accelerating and de-risking the transformation plan.
Current stock price: 188.42 pence
12-month change: down 21%
By Jeremy Cutler, Alliance News reporter
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