Hyve Group PLC on Monday said it had refinanced its debt as it reported ‘positive trading momentum’ into its upcoming financial year.
The London-based events organiser said it had signed new debt facilities totalling £135 million. These facilities comprise a £115 term loan and a £20 million super senior revolving credit facility.
The new debt facilities will replace the group’s previous debt facilities, with the £101 million currently drawn to be repaid in full on October 20 when the new funds are to be drawn.
The £115 term loan is provided by HPS Investment Partners LLC and is repayable over the next four years. Interest is initially payable at a rate of 7.8% over the sterling overnight interbank exchange rate.
The remaining £20 million super senior revolving credit facility is provided by HSBC Bank PLC and is available over the next three years and nine months. Interest is initially payable on drawn amounts at 3.5% over SONIA
Hyve Group also said that the pace of in-person event recovery, which the company said had ‘exceeded anticipated levels’ in its June 2022 trading update, continued to be ahead of expectations.
In September, two of the group’s largest events - Autumn Fair and Groceryshop - took place and both ‘significantly outperformed’ their previous editions. Groceryshop reported revenue more than 40% higher than the largest pre-Covid edition of the event.
The company said positive trading momentum has continued approaching the 2023 financial year, with forward bookings currently in excess of £65 million. The company said its improved trading performance will offset the additional debt service cost from the increased margin over SONIA.
As of August 31, the group’s cash position was £35 million and adjusted net debt was £66 million, on track to be towards the lower end of the previously stated FY22 year end guidance of £70 to £90 million.
Chief Executive Officer Mark Shashoua said: ‘I am pleased that we have secured new debt facilities with two partners that share our vision and are aligned with our ambitions. With the continued accelerated pace of recovery, we now have the long-term financial footing to further advance our organic growth and omnichannel strategy.’
Shares in Hyve Group were trading 6.0% higher at 53.80 pence each at around midday on Monday.
Copyright 2022 Alliance News Limited. All Rights Reserved.
