23rd Sep 2024 11:00
(Alliance News) - Literacy Capital PLC on Monday announced it has refinanced and extended a revolving credit facility to provide the business with additional capital and flexibility.
Literacy Capital is a London-based investment company that donates 0.9% of its net assets every year in cash to UK literacy charities.
Literacy replaced the existing GBP30 million revolving credit facility with Investec Bank PLC that was due to expire in December this year with a new facility provided by OakNorth Bank PLC. This new facility has a three-year term and is due to expire in September 2027.
GBP30 million in funding is fully committed, with an incremental GBP10 million also available for use within the term.
The cost of the new facility is lower than the one it replaces, providing Literacy with greater flexibility for new investments. The loan-to-value financial covenant remains unchanged at 20%.
Chief Executive Officer Richard Pindar said: "We are pleased to agree a new debt facility for the fund, which will support Literacy and its investment activity over the medium term to continue delivering leading net asset value performance and shareholder returns. It is testament to the maturity and growth achieved by Literacy that several competitive proposals were received from lenders, all of which offered more attractive terms than the original facility put in place in 2021.
"We are encouraged by the large number of high-quality founder-led businesses in the UK and we continually appraise these new investment opportunities. We also continue to assess options regarding re-financing or selling portfolio companies to generate cash and recycle capital into newer investments."
Shares in Literacy Capital were down 0.4% at 502.40 pence each in London on Monday morning.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.