Card Factory completes refinancing, no plans for equity raise

21st Apr 2022 08:02

(Sharecast News) - Card Factory said on Thursday that it has completed a refinancing with its banking syndicate after making good progress in using its positive cash flows to reduce debt and that it has no intention of completing an equity raise.

The greetings cards and gifts retailer has agreed revised terms on reduced facilities of £150m, down from £225m. As at 31 March, the group's net debt excluding lease liabilities was £79m.

The revised facilities comprise a £100m revolving credit facility, substantially on the same terms as the previous RCF, available until September 2025 and a £11.25m term loan facility, to be repaid between 31 January 2023 and 31 January 2024.

They also include a £18.75m term loan facility, to be repaid in six quarterly instalments of £1.75m from April 2024 and a final bullet repayment of the balance in September 2025; and in aggregate, a balance of £20m Coronavirus Large Business Interruption Loan Scheme facilities, repayable by September 2023. As a result, the group will reduce its government backed CLBILS element from the original £50m to £20m.

Card Factory also said that the best efforts commitment given to its banks to raise net equity proceeds of £70m by 30 July has been removed from the revised facilities and it does not plan to carry out an equity raise.

Chief executive Darcy Willson-Rymer said: "I am pleased to be able to announce the successful completion of Card Factory's refinancing today. This is an important milestone for our business, ensuring we have the financial foundations in place to capitalise on the opportunities ahead.

"We are now well positioned to continue our strategic transition from a store-led card retailer to a market leading omnichannel retailer of cards and gifts. I look forward to updating you on our progress at our full year results next month."

At 1025 BST, the shares were up 30% at 58.60p.