IG Design Group plc announced the successful refinancing of its lending facilities. The Group has successfully negotiated a three-year refinancing with HSBC and NatWest for £40m which is structured as a Recourse Receivables Finance Facility. The Group's UK overdraft facility will be cancelled upon commencement of this new facility.
The new facility carries an initial bank margin of 1.75% over the Sterling Overnight Index Average (SONIA), the Euro Interbank Offered Rate (EURIBOR), or the Secured Overnight Financing Rate (SOFR), depending on the currency drawn. This compares to a margin of 1.75% - 2.25% plus a 0.1% credit adjustment spread over the SOFR under the Group's previous lending facility. The new facility is expected to offer better value and be simpler to manage.
The previous facility ended upon the completion of the disposal of DG Americas. The Board believes that the new facility, which flexes in line with the receivables in the UK and Netherlands, provides more than sufficient headroom to fund the Group's working capital needs over the period of the facility.
