Smiths News PLC — Capital/Financing Update 2021

Dec 23, 2021

National Storage Mechanism | Additional information

RNS Number : 5576W

Smiths News PLC

23 December 2021

23 December 2021

This document contains inside information

Smiths News plc

("the Company")

Extension and amendment of Financing Agreement

Smiths News plc is pleased to announce it has signed an agreement to extend and amend its current banking facilities to 31 August 2025 (the "Agreement"), from the previous maturity date of November 2023. The Agreement has been made with a syndicate of banks comprising existing lenders HSBC, Barclays, Santander and Clydesdale. 

The Company's banking facilities will now comprise a £60.0m amortising term loan and a revolving credit facility with an initial limit of £30.0m. The new facilities have been negotiated following the ongoing deleveraging of the business and increases the existing cap on dividends and distributions from £6m to £10m for each financial year during the term of the Agreement, which will enable the business to increase returns to shareholders.

These facilities will amortise down to a maximum of £41.5m over the loan period. The facilities are available at an initial minimum margin of 4.25% over SONIA, reducing to 4% after 6 months.

Jonathan Bunting, Chief Executive Officer of Smiths News, said:

"We are pleased to have reached this agreement which reflects the excellent progress we have made in strengthening the Company's underlying finances and helps to ensure that all stakeholders will benefit from our ongoing success. Looking ahead, we expect to continue to reduce bank net debt and be below 1x Adjusted pre-IFRS16 EBITDA at the half year."

Enquiries:

Smiths News PLC Jonathan Bunting, Chief Executive Officer Paul Baker, Chief Financial Officer	Via Buchanan
www.corporate.smithsnews.co.uk
Buchanan Richard Oldworth / Jamie Hooper / Toto Berger smithsnews@buchanan.uk.com www.buchanan.uk.com	020 7466 5000

About Smiths News PLC

Smiths News PLC and its core business, Smiths News, is the UK's largest newspaper and magazine wholesaler, with an approximate 55 per cent. market share. It distributes newspapers and magazines on behalf of the major national and regional publishers, delivering to approximately 24,000 customers across England and Wales on a daily basis. The speed of turnaround and the density of Smiths News' coverage is critical to one of the world's fastest physical supply chains.

Ancillary businesses include: Dawson Media Direct (DMD) which supplies airlines and travel points in the UK; and Instore, which offers field marketing services to retailers and suppliers across the UK.

Person responsible for arranging release of this announcement:

Stuart Marriner, General Counsel & Company Secretary

Smiths News plc

Rowan House

Cherry Orchard North

Kembrey Park

Swindon

SN2 8UH

email: cosec@smithsnews.co.uk

LEI: 2138004O33ONVOOQXB02

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