Business
Update re Revolving Credit Facility
Update re Revolving Credit Facility.
About this update from Venture Life Group Plc
[{"type":"text","content":"\n \n \n 13th March 2023\n \n \n \n \n \n VENTURE LIFE GROUP PLC\n \n \n (\"Venture Life\" \"VLG\" or the \"Company\")\n \n \n Update regarding Revolving Credit Facility\n \n \n \n \n \n Venture Life (AIM: VLG), a leader in developing, manufacturing and commercialising products for the self-care market, announces an update regarding its Revolving Credit Facility (\"RCF\"), in the light of the recent events at Silicon Valley Bank.\n \n \n The RCF, which provides VLG with available borrowings of up to £30 million is co-ordinated and managed by VLG's main relationship bank, Santander UK plc (\"Santander\"), and Silicon Valley Bank UK also participates in the RCF.\n \n \n In light of the recent events at Silicon Valley Bank\n , the Group wants to clarify the nature of its relationship with Silicon Valley Bank UK (\"SVB\"):\n \n \n ·\n Neither VLG nor its subsidiaries (the \"Group\") has any deposits with SVB either in the UK or the USA. The Group is therefore not dependent on SVB to make payments to third parties and there are no funds of the Group at risk as a result of any insolvency of SVB.\n \n \n ·\n SVB is a lender under the RCF, and provides 50% of the funds drawn under the facility.\n \n \n ·\n The anticipated insolvency of SVB will have no impact on the term of the RCF which is not due for renewal until June 2024; and will not result in any acceleration of the repayments due by VLG under the RCF.\n \n \n The RCF contains a mechanic under which Santander may take over the SVB portion of the RCF (and also allows for another lender to participate in the RCF). The Group has commenced discussions with Santander in relation to Santander doing this, and those initial discussions have been positive. Santander have indicated they remain fully supportive of VLG and of VLG's plans to commence a refinance of the RCF given the expiry in June 2024. Those plans will now be accelerated.\n \n \n As set out in the Group's trading update on 31st January 2023, Group leverage2 at 31st December 2022 was in the region of 1.4x net debt to Adjusted EBITDA1 (31st December 2021: 0.4x) reflecting the impact of the recent acquisition of HL Healthcare Limited (including the Earol brand).\n \n \n Group leverage is expected to fall in 2023 to 1.0x or lower by the end of 2023, due to the cash generative nature of the business, now inc...