Kape Technologies PLC New Bank Facility (1152A)

TIDMKAPE

RNS Number : 1152A

Kape Technologies PLC

28 May 2021

28 May 2021

Kape Technologies plc

("Kape," the "Group" or the "Company")

New Bank Facility

Debt Facility provides Kape support for future growth

Kape (AIM: KAPE), the digital security and privacy software business, announces it has entered into an agreement with its existing bank syndicate of Bank of Ireland, Barclays Bank PLC and Citi Commercial Bank, as well as three new banks being Citizens Bank, BNP Paribas and Leumi Bank (together, "the Banks"), to provide new senior secured bank facilities of up to $220 million ("New Debt Facilities"). The New Debt Facilities comprise a $120 million senior secured term facility (the "Term Facility"), a $10 million revolving credit facility (the "RCF") and a $90 million uncommitted acquisition facility (the "Uncommitted Acquisition Facility"). Bank of Ireland is the agent bank. The New Debt Facilities will replace all Kape's existing loan facilities.

The New Debt Facilities have a three-year term with an option to extend by up to an additional two years. Funding is expected to take place next week. 50% of the Term Facility will be amortised on a quarterly basis across 36 months. The New Debt Facilities carry a margin of 2% above Applicable Reference Rate per annum reducing the debt cost from the 6% interest on the existing subordinated bridge loan.

On 5 March 2021, the Company announced that in order to finance its acquisition of Webselenese Ltd., it had entered into a bridge loan facility with TS Next Level Investments Limited, an affiliate of Unikmind Holdings Limited (the "Bridge Loan"), with the stated intention of replacing the Bridge Loan with a long-term facility from commercial banks. The proceeds of the Term Facility will now be used to repay in full and cancel each of the Bridge Loan and the Company's existing US$40 million term facility. The company's net debt to Pro-forma EBITDA ratio is c. 1.6x.

Moran Laufer, Chief Financial Officer of Kape, commented:

"We are pleased to have broadened our relationships with Bank of Ireland, Barclays Bank PLC and Citi and to welcome three new banks, Citizens Bank, BNP Paribas and Leumi Bank, as Kape continues to progress on its exciting growth trajectory. This ongoing support from top tier global financial institutions is a clear endorsement of our strategy and gives us the firepower to further execute on our expansion. We continue to remain acutely focused on growing our market reach and creating value for all our stakeholders."

Enquiries:

 
 Kape Technologies plc                                via Vigo Consulting 
  Ido Erlichman, Chief Executive Officer 
  Moran Laufer, Chief Financial Officer 
 Shore Capital (Nominated Adviser & Broker) 
  Mark Percy / Toby Gibbs / James Thomas / Michael    [phone] 
  McGloin                                              4090 
 Stifel Nicolaus Europe Limited (Joint Broker) 
  Alex Price / Brad Topchik / Alain Dobkin /          [phone] 
  Richard Short                                        7600 
 Vigo Consulting (Financial Public Relations) 
  Jeremy Garcia / Antonia Pollock                     [phone] 
  [e-mail]                              0237 
 

About Kape

Kape is a leading 'privacy-first' digital security software provider to consumers. Through its range of privacy and security products, Kape focuses on protecting consumers and their personal data as they go about their daily digital lives.

To date, Kape has over 2.6 million paying subscribers, supported by a team of over 420 people across eight locations worldwide.

Through its subscription-based platform, Kape has fast established a highly scalable SaaS-based operating model, geared towards serving the vast global consumer digital privacy market.

www.kape.com

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May 28, 2021 02:00 ET (06:00 GMT)