Portfolio

Revolution Bars extends debt facilities with NatWest

By Josh White

Date: Tuesday 26 May 2020

Revolution Bars extends debt facilities with NatWest

(Sharecast News) - Revolution Bars Group announced an extension to its debt facilities on Tuesday, with the board saying it was confident the extension would provide it with sufficient liquidity for the foreseeable future.
The London-listed firm had announced on 14 April that its lender NatWest agreed to increase its revolving credit facility to £30.0m from £21.0m, until 31 August, following which it would step down to £24.0m.

NatWest also agreed to waive all financial covenant tests for March and June.

On Tuesday, Revolution said that, subject to final documentation, NatWest had agreed to further increase its overall debt facilities, using the UK government's Coronavirus Large Business Interruption Loan Scheme.

NatWest would provide the group with a £16.5m term loan, and the facility would remain at £21.0m.

The term loan would mature on 30 June 2023, following which it would need to be repaid or refinanced.

It would be amortised by £1m per annum, with the first repayment occurring in June 2021

The facility, meanwhile, was extended by six months to June 2022, following which it would also need to be refinanced or repaid.

Revolution said the facility would also be reduced by £1m per annum, with the first reduction occurring in June 2021.

With the revised facilities in place, the group would have total debt facilities of £37.5m until June 2021, then reducing to £35.5m until at least June 2022.

The revised facilities were being provided on normal commercial terms, the board said.

Revolution said its net debt position was currently £22m, adding that with the revised facilities in place, it was "confident" that it would have sufficient liquidity for the foreseeable future, even taking into account its downside Covid-19 trading scenario.

As part of the revised facilities, NatWest also agreed to amend the group's financial covenants to be based solely on cash headroom, set at a level based on the group's downside Covid-19 trading scenario.

In accordance with the terms and conditions of the Coronavirus Large Business Interruption Loan Scheme, the payment of dividends by the group would be prohibited while the term loan was outstanding.

The board said it was continuing to monitor and assess its current and future financial position, as well as all financing options available to it.

"Again, we welcome and are delighted with the additional support from NatWest," said chief executive officer Rob Pitcher.

"They continue to act as a true partner to our business and this decisive action will enable us to emerge from this crisis in a financially stable position."

Pitcher said that when restrictions are lifted, the company would reopen with "much caution", prioritising the health and safety of its employees and customers.

"However, with the security of a stable financial position and underpinned by our young guest base, we believe that the group is well-placed to return to good levels of trading reasonably quickly."

At 1455 BST, shares in Revolution Bars Group were up 21.11% at 21.8p.

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