LUCECO PLC — Regulatory Filings 2021

Oct 1, 2021

National Storage Mechanism | Additional information

RNS Number : 6460N

Luceco PLC

01 October 2021

1 October 2021

Luceco plc

Announcement of new credit facilities

Providing increased funding capacity and diversity

Luceco plc ("Luceco" or the "Group"), the manufacturer and distributor of high quality and innovative wiring accessories, LED lighting, and portable power products, is pleased to announce the signing of a new Revolving Credit Facility that will provide the Group with borrowing of up to £120m.

The key details are as follows:

·      Initial commitment of £80m, with the potential to expand by a further £40m via an accordion facility over the term

·      Replacing £50m of existing facilities, including ending the Group's use of asset-backed financing in favour of traditional committed lending

·      Supported by four participating banks, diversifying the Group's source of funds: HSBC UK Bank Plc (incumbent), NatWest, Bank of China and Bank of Ireland

·      Committed until 30 September 2024, with an option to extend by up to two years thereafter

·      Same pricing as existing facilities

·      Financial covenants (pre-IFRS 16 basis):

o  Net debt leverage of <3.0x Adjusted EBITDA (2.5x for existing facilities)

o  Interest cover of >4.0x Adjusted EBITDA (same as existing facilities)

o  Accordingly, the Group will begin to report pre-IFRS 16 Adjusted EBITDA, net debt and leverage metrics from 31 December 2021

·      Luceco's capital structure policy of targeting leverage at 1.0 - 2.0x Adjusted EBITDA is unchanged

Matt Webb, Chief Financial Officer, commented:

"This new facility adds greater support and diversity to Luceco's funding arrangements and allows us to access our substantially increased borrowing capacity to invest in future growth.  I am delighted to welcome new lenders to the Group and look forward to working with our entire banking syndicate in support of the Group's long-term ambitions."

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For further information, please contact:

Luceco plc	Contact
Matt Webb, Chief Financial Officer	020 3128 8572 (Via MHP Communications)
MHP Communications	Contact
Tim Rowntree	020 3128 8572
James Bavister	020 3128 8572

Business summary

Luceco is a manufacturer and distributor of high quality and innovative wiring accessories, LED lighting and portable power products for a global customer base.

The Group supplies trade distributors, retailers, wholesalers and project developers with a wide range of products which broadly fall into the following market recognised brands:

·      British General ("BG"): wiring accessories including switches and sockets, circuit protection and cable management products;

·      Luceco, Kingfisher Lighting: energy efficient LED lighting products and associated accessories; and

·      Masterplug: cable reels, extension leads, EV chargers, surge protection, timers and adaptor products.

Luceco's long-established BG brand commands a loyal following amongst professional electrical contractors in both the UK and overseas.  It is synonymous with quality, safety, innovation and value for money.  The production of BG wiring accessories is the main focus of the Group's Chinese manufacturing facility, allowing it to control product quality, cost and availability.

The Luceco, Kingfisher LED lighting brands combine to present a comprehensive range of indoor and outdoor LED lighting solutions.  The range focuses largely on professionally installed products with an emphasis on performance and quality.  The Group is able to support these products by offering customers access to its in-house installation design team.

Masterplug is the market leading brand in the UK Portable Power category.  It is sold largely to consumers through retail distribution and online.  Its products are offered in a wide range of global electrical standards and they are sold in every territory in which the Group operates.

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