NGHT.L Regulatory News (NGHT)

17 August 2022

Nightcap plc

("Nightcap" or the "Company" or the "Group")

Refinancing of banking facilities

Nightcap (AIM: NGHT), the owner of The Cocktail Club, the Adventure Bar Group and the Barrio Familia group of bars, announces that it has agreed a £10.0m debt refinancing facility with HSBC. 

The new debt facility will see the Group consolidate its various existing debt facilities, totalling £5.5m, across its businesses. The remaining £4.5m under the new HSBC debt facility is reserved for capital expenditure on the Group's new sites as Nightcap looks to continue to grow its footprint in prime locations, both in London and in key cities across the UK. In addition to the 31 open venues and the three sites in final stages of fit out, the Group has a further 22 premises under offer or in legal negotiations across the Group's brands.

The new debt facility comprises two tranches: a £3.0m term loan which is repayable over the next three year period and a £7.0m revolving credit facility. The term loan and the revolving credit facility have interest rates payable of 3% and 3.25% over SONIA respectively, which represent improved interest rate terms compared to the legacy facilities. The Group is providing the usual covenants and security for a debt facility of this nature.

As announced in the Company's trading update on 4 August 2022 the Company's cash position (including cash in transit) as at 3 July 2022 was £6.1m.

Completion of the new debt facility (and therefore the refinancing) is subject to the satisfaction of certain customary conditions precedent. 

Sarah Willingham, Chief Executive Officer of Nightcap, commented:

"When we listed Nightcap on AIM and embarked on a company and new site acquisition programme last year, we knew that we would want to consolidate our debt facilities with the right banking partner.

"We have taken our time and at the end of a very competitive process we are delighted to have successfully agreed our Group refinancing. We are over the moon to be partnering with HSBC, who have proven themselves as long-term supporters of our sector. 

"Throughout the process the HSBC team showed an appreciation for our team and performance and a deep understanding of the unique opportunity we are capturing with Nightcap.

"The £10m debt facility will support our growth plans for the coming years as we make good on our mission for Nightcap to become the UK's leading cocktail bar group."

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