Refinancing and extension of the fund’s RCF
Summary
The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area, Canada, Australia, Japan or the Republic of South Africa.Refinancing and extension of the funds Revolving Credit FacilityLiteracy Capital plc ("Literacy", "BOOK" or the "Company"), a listed investment trust primarily focused on investing directly into private, UK-based businesses, announces a new Revolving Credit Facility ("RCF") with OakNorth Bank plc ("OakNorth"):\xb7 Literacy has replaced its existing \xa330m RCF, which was due to expire in December 2024, with a new facility provided by OakNorth.\xb7 The new RCF has a three-year term, which will expire in September 2027, and provides Literacy with up to \xa340m of funding. It extends the term of the funds RCF until 2027, whilst also providing additional capital and flexibility, at a lower cost than the existing facility.Commenting on the new debt facility, CEO of BOOKs investment manager, Richard Pindar, said:"We are pleased to agree a new debt facility for the fund, which will support Literacy and its investment activity over the medium term to continue delivering leading NAV performance and shareholder returns. It is testament to the maturity and growth achieved by Literacy that several competitive proposals were received from lenders, all of which offered more attractive terms than the original facility put in place in 2021.We are encouraged by the large number of high-quality founder-led businesses in the UK and we continually appraise these new investment opportunities. We also continue to assess options regarding re-financing or selling portfolio companies to generate cash and recycle capital into newer investments. We appreciate the speed with which OakNorth have completed this transaction and look forward to working together over the next three years.The new RCF has a three-year term, meaning it expires in September 2027, providing a solid foundation for Literacy to continue making new investments and to support the existing portfolio.