TIDMHARL

RNS Number : 1207Y

Harland & Wolff Group Holdings PLC

29 December 2023

This announcement contains inside information.

29 December 2023

Harland & Wolff Group Holdings plc

("Harland & Wolff" or the "Company")

GBP200 Million Credit Facility & Associated

UK Export Finance Export Development Guarantee

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management, reports that it has sought and obtained permission from Ministers to advance negotiations in relation to the proposed GBP200 million guaranteed loan facility with UK Export Finance (UKEF) under its Export Development Guarantee Scheme ("EDG Scheme").

In order to ensure that the proposed loan facility is compliant with the relevant rules where UKEF was to provide a 100% guarantee to UK commercial lending banks ("Banks"), UKEF will now appoint an independent third party to ascertain an appropriate premium over SONIA. This process will commence in January 2024.

Following ministerial approval to progress negotiations, the Company will now firm up the Bank syndicate and appoint a lead arranger. In parallel, the Company will commence necessary documentation in relation to the credit and guarantee agreements as well as the security package that will be offered. It is likely that the security package will entail providing the Banks with a first charge on substantially all the assets of the Company, similar to what has been provided to Riverstone Credit Partners in March 2022. This transaction will be subject to the agreement of Ministers, final approval of the financing terms, and Investment Committee approvals of the Banks.

The Company also reports that no warrants are expected to be issued to the Banks or UKEF.

Through a combination of cash currently held on the balance sheet and expected cash flows in 2024 generated from existing contracts, the Directors consider that the Company has sufficient funds to meet its working capital requirements until the new loan facility is completed.

A further detailed announcement will be made by the Company in the event that this credit facility and associated guarantee is placed, and the transaction has been executed.

   For further information, please visit    www.harland-wolff.com    or contact: 
 
 Harland & Wolff Group Holdings plc                 +44 (0)20 3900 
  John Wood, Chief Executive Officer                 2122 
  Arun Raman, Chief Finance Officer                  investor@harland-wolff.com 
                                                     media@harland-wolff.com 
 Cavendish Securities plc (Nominated Adviser 
  & Broker) 
  Stephen Keys / Callum Davidson / Dan Hodkinson 
  (Corporate Finance)                               +44 (0)20 7397 
  Michael Johnson (Sales)                            8900 
                                                   ---------------------------- 
 Liberum Capital Limited (Joint Broker)             +44 (0)20 3100 
  Nicholas How / Edward Mansfield                    2000 
                                                   ---------------------------- 
 Radnor Capital Partners (Investor Relations)       +44 (0) 20 3897 
  Neville Harris / Joshua Cryer                      1838 
                                                   ----------------------------

About Harland & Wolff

Harland & Wolff is a multisite fabrication company, operating in the maritime and offshore industry through five markets: commercial, cruise and ferry, defence, energy and renewables and six services: technical services, fabrication and construction, decommissioning, repair and maintenance, in-service support and conversion.

Its Belfast yard is one of Europe's largest heavy engineering facilities, with deep water access, two of Europe's largest drydocks, ample quayside and vast fabrication halls. As a result of the acquisition of Harland & Wolff (Appledore) in August 2020, the company has been able to capitalise on opportunities at both ends of the ship-repair and shipbuilding markets where there will be significant demand.

In February 2021, the company acquired the assets of two Scottish-based yards along the east and west coasts. Now known as Harland & Wolff (Methil) and Harland & Wolff (Arnish), these facilities will focus on fabrication work within the renewables, energy and defence sectors.

In addition to Harland & Wolff, it owns the Islandmagee gas storage project, which is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Irish economy as a whole when completed.

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December 29, 2023 02:00 ET (07:00 GMT)

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