Card Factory refinances £150 million facility, extends to 2025

By Mary-Katherine Stinson

Lexington, Ky., April 21 – Card Factory plc agreed to revised terms on its reduced £150 million of credit facilities, according to a notice.

The revised facilities consist of:

• A £100 million revolving credit facility with substantially the same terms as the company’s previous revolver, now available until September 2025;

• A £11.25 million term loan facility to be repaid between Jan. 31, 2023 and Jan. 31, 2024;

• An £18.75 million term loan facility to be repaid in six quarterly installments of £1.75 million from April 2024 with a final bullet repayment of the balance in September 2025; and

• A total balance of £20 million coronavirus large business interruption loan scheme facilities repayable by September 2023.

The coronavirus loan represents a reduction from the original £50 million.

The company’s previous facility totaled £225 million.

As of March 31, the company’s net debt excluding lease liabilities was £79 million.

Card Factory’s commitment to its banks to raise net equity proceeds of £70 million by July 30 has been removed from the revised facilities and the company stated that its board has no intention of completing an equity raise.

There will continue to be a restriction on dividend payments until the coronavirus facilities and the £11.25 million term loan is repaid. The repayment is expected on Jan. 31, 2024 and dividends are subject to the leverage ratio being 1.5x or less.

“This is an important milestone for our business, ensuring we have the financial foundations in place to capitalize on the opportunities ahead. We are now well positioned to continue our strategic transition from a store-led card retailer to a market leading omnichannel retailer of cards and gifts,” said chief executive Darcy Wilson-Rymer, in the press release.

The company will release its preliminary results for the financial year ending Jan. 31 on May 3.

Card Factory is a specialist retailer of greeting cards based in Wakefield, England.

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