Business
Bondholder Meeting
Bondholder Meeting.
About this update from Team Internet Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8595L\n CentralNic Group PLC\n 15 January 2021\n \n \n \n \n 15 January 2021\n \n \n \n \n \n CentralNic Group plc\n \n \n (\"CentralNic\" or the \"Company\" or the \"Group\")\n \n \n \n \n \n Bondholder meeting\n \n \n \n \n \n CentralNic Group plc (AIM: CNIC), the global internet platform that derives revenue from the subscription sales of domain names and web services, announces it has called a bondholder meeting to be held on \n 29 January 2021\n . \n \n \n \n \n \n Since the senior secured bond issue in H2 2019 (more details on the bond terms were announced on 30 September 2019) (the \"Bond\"), CentralNic has acquired seven companies and increased its revenue from USD 56.0m (2018) to USD 168.5m (9 months 2020) as well as its adjusted EBITDA from USD 9.2m (2018) to USD 22.1m (9 months 2020) as reported in the Group's Q3 2020 Interim Report released on 30 November 2020. This strong growth has been achieved through a combination of organic growth and successful integration of acquisitions.\n \n \n \n \n \n In order to facilitate the Company's continued strong growth by making further acquisitions while not diluting its existing shareholder base, CentralNic is now seeking to make certain amendments to the terms for the Bond. These changes reflect, in part, the fact that since issuing the Bond, CentralNic has become a larger company and therefore is able to service more debt than at the point the bond was initially placed. \n \n \n \n \n \n The proposed changes are to:\n \n \n \n \n \n 1. increase the maximum potential amount under the Bond from EUR 90m to EUR 150m. This is to give CentralNic the option to proceed quickly with potential M&A in a non-dilutive manner by way of further tap issues (for example as was announced at the time of the acquisition of Team Internet AG on 24 December 2019); and \n \n \n \n \n \n 2. allow for proforma and certain other common adjustments to EBITDA in the Bond Terms, in calculation of the super senior RCF and other thresholds and baskets. This is to better reflect the acquisitive growth strategy of the Group.\n \n \n \n \n \n It should be noted that the changes, if approved, merely increase the potential cap of the bond so as to provide the Group with enhanced potential flexibili...