The information
contained in this announcement is restricted and is not for
publication, release or distribution in the United States of
America, any member state of the European Economic Area, Canada,
Australia, Japan or the Republic of South Africa.
This announcement contains inside
information.
3 April 2024
Literacy Capital plc ("Literacy" or the
"Fund")
Significant refinancing of portfolio
company completed raising substantial cash for
Literacy
Transaction highlights
· The refinancing returns £20m of cash to
Literacy Capital plc
· The enlarged debt facilities with new
lenders, give the portfolio company access to additional funding,
allowing it to further invest and accelerate
growth
· Cash proceeds will be used to repay
drawings under Literacy's RCF, providing flexibility to fund
further investments or return capital to shareholders in
future
Portfolio update
Literacy is pleased to announce that it has
completed the refinancing of one of its largest portfolio companies
with new lenders. These new debt facilities released cash to
shareholders, including Literacy, with the Fund's share amounting
to £20m.
The transactions also included a larger
re-organisation of the shareholder base, which saw some minority
shareholders exit and realise their holdings. As a result, Literacy
benefits through its shareholding in the portfolio company
increasing, whilst also returning substantial cash to the
Fund.
The new debt facilities will give the business
access to more funding, allowing it to be more acquisitive and
invest more into growth. This ought to position the company
positively for the future and help the company to contribute to
further NAV uplifts in future periods.
Literacy intends to use the cash proceeds to
repay the majority of the amount drawn under its Revolving Credit
Facility, before recycling these proceeds into new investments.
This refinancing represents a further example of Literacy's
portfolio companies growing maturity and interest from
institutional funders in the Fund's portfolio companies. It also
demonstrates the active involvement in managing the Fund's
interests, ensuring that capital is recycled and deployed
efficiently.
In line with recent announcements to the market,
the current expectation is that Literacy will continue to receive
meaningful cash inflows over the remainder of 2024, given the level
of interest in its portfolio companies.
Signing and completion of the transaction has
taken place, with £18.5m of cash received prior to Easter, with the
balance expected in Q2. The transaction will have an immaterial
immediate impact on NAV, compared to Literacy's most recently
reported figures (from 31 December 2023).
The name of the portfolio company has not been
disclosed and will remain confidential.
Enquiries
For further information, please
contact:
Literacy Capital plc / Book Asset Management
LLP:
Richard Pindar / Tom
Vernon
|
+44 (0) 20 3960 0280
|
MHP
Group:
Reg Hoare / Ollie Hoare / Matthew
Taylor
|
+44 (0) 20 3128 8100
book@mhpgroup.com
|
Singer Capital Markets Securities Limited:
Robert Peel
|
+44 (0) 20 7496 3000
|
About Literacy
Capital:
Literacy Capital (BOOK.L) is an
investment trust that was co-founded by Paul Pindar and Richard
Pindar in 2017 with £54 million of capital. Literacy subsequently
listed on the London Stock Exchange in June 2021. The Fund focuses
on opportunities to invest for the long-term in growing private
businesses where a clear route to creating additional value can be
seen with its support. The fund structure is evergreen, allowing it
to be more flexible and to accommodate the wishes or needs of
founders.
The Fund also has a unique charitable
objective, to donate 0.9% of NAV annually to charities focused on
improving literacy in UK children. Over £8.5 million has been
donated or reserved for donation to charities since the trust's
creation in 2017 up until 31 December 2023. For more information,
please visit our website: www.literacycapital.com.
Website:
www.literacycapital.com
LEI: 2549006P3DFN5HLFGR54
A copy of this announcement will be available on
the Company's website at www.literacycapital.com.