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SNWS Smiths News Plc

57.80
0.00 (0.00%)
14 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Smiths News Plc LSE:SNWS London Ordinary Share GB00B17WCR61 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 57.80 57.20 57.80 57.80 57.20 57.80 113,247 16:29:51
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Books & Newspapers-wholesale 1.09B 25.1M 0.1013 5.71 143.17M

Smiths News PLC Refinancing Agreement

02/05/2024 7:00am

RNS Regulatory News


RNS Number : 8783M
Smiths News PLC
02 May 2024
 

2 May 2024

 

This announcement contains inside information

 

 

Smiths News plc

("Smiths News" or the "Group" or the "Company")

 

Refinancing Agreement

 

Smiths News (LSE: SNWS), the leading distributor of newspapers, magazines and ancillary services to retailers across the UK, is pleased to announce it has signed a refinancing agreement to replace its current senior finance agreement, which was due to mature on 31 August 2025.

 

The new refinancing agreement with two of the Company's existing lending syndicate, Santander and HSBC (the "Agreement"), comprises a £40 million revolving credit facility ("RCF"), with an additional £10 million uncommitted accordion facility (together the "Facilities").

 

The Facilities are available initially on a three-year term at an improved competitive margin of 2.45% per annum over SONIA, which is a 155bps improvement from the previous agreement. The Company has the option at each of the first and second anniversaries to extend maturity on the same financial terms, with lender consent, upon new three-year maturity periods.

 

The Agreement removes the existing cap on dividends and distributions, which was previously capped at £10 million per financial year. The removal of this restriction will enable the Company to implement its revised capital allocation policy that comprises:

 

·      Maintaining a strong balance sheet, with a Bank Net Debt: adjusted EBITDA ratio of less than 1.0x

·      Continued investment in both core business and organic growth

·      Payment of sustainable ordinary dividend, maintaining 2x dividend cover

·      Disciplined approach to inorganic growth, focused on bolt-on acquisitions with clear accretive returns to enhance shareholder value

·      Further returns to shareholders when appropriate.

 

Further detail on the successful refinancing is provided in the Group's interim results announcement and accompanying presentation, published today. 

 

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

 

"We are extremely pleased to announce today's refinancing news, reflecting the clear progress we have made in strengthening the Company's underlying finances and reducing the net debt of the business. The removal of the distribution cap also enables us to implement a revised capital allocation policy that will support our goals of investing in business capabilities, exploring inorganic adjacent market opportunities and delivering value to investors."

 

 

For further information, please contact:

 

Smiths News plc

Jonathan Bunting, Chief Executive Officer

Paul Baker, Chief Financial Officer

www.smithsnews.co.uk

 

via Vigo Consulting

 

Vigo Consulting

Jeremy Garcia / Fiona Hetherington / Verity Snow

smithsnews@vigoconsulting.com

Tel: +44 (0) 20 7390 0230

 

 

About Smiths News

 

For over 200 years, Smiths News has been delivering newspapers to retailers across the UK. It distributes newspapers and magazines on behalf of the major national and regional publishers, delivering to approximately 23,000 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.

 

For more information, please visit: www.smithsnews.co.uk

 

 

Person responsible for arranging release of this announcement:

Stuart Marriner, General Counsel and Company Secretary

Smiths News plc, Rowan House, Cherry Orchard North, Kembrey Park, Swindon SN2 8UH

Email: cosec@smithsnews.co.uk  

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
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