Business
Covid-19 update and Action Seminar
Covid-19 update and Action Seminar.
About this update from 3i Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 7254G\n 3i Group PLC\n 19 March 2020\n \n \n \n \n Press release\n \n \n 19 March 2020\n \n \n \n 3i Group plc\n \n \n Update on Covid-19 and\nAction Capital Markets Seminar \n \n \n \n \n \n 3i Group plc (\"3i\" or \"the Group\") will be holding a Capital Markets Seminar this morning, involving a presentation from the management team of Action. Presentation materials will be made available on 3i's website (\n \n www.3i.com\n \n ), and a copy of the transcript will be published when it is available. \n \n \n Since 3i published its performance update for the nine months to 31 December 2019 on 30 January 2020, the global impact of Covid-19 on public health, business, financial markets, and governments' responses has developed rapidly. This further update provides a brief summary of the current status of 3i's balance sheet position and our Private Equity portfolio ahead of the valuation of the portfolio as at 31 March 2020.\n \n \n 3i Group balance sheet\n \n \n 3i has had a conservative balance sheet strategy since its restructuring in 2012. It has two long-dated bonds (£200 million, maturing in 2023, and £375 million, maturing in 2032) which have no financial covenants. On 13 March 2020, we completed the refinancing of our Revolving Credit Facility (\"RCF\"), increasing its amount from £350 million to £400 million in a five year facility with an option to extend annually for a further two years. The cost of the facility, which has no financial covenants, was also reduced. At 31 March 2020, we expect our cash balance to be c.£800 million before the payment of carry in respect of the Action liquidity event due in May 2020; there are currently no plans to draw on our RCF.\n \n \n Private Equity portfolio\n \n \n We completed our semi-annual portfolio company review meetings of the substantial majority of our top 20 investments (which at 31 December accounted for 97% of the total Private Equity portfolio value) in the week commencing 9 March 2020. Although the situation is very fluid, the majority of our portfolio is expected to experience a modest short-term disruption to its business, principally as a result of the country by country lockdowns. A small number of other companies are more directly and significantly affected, at least in the short term.&...