Revel Collect Regulatory News (RBG)

Revolution Bars Group plc (LSE: RBG)

Banking Facilities update

Liquidity for the foreseeable future

Revolution Bars Group plc (the "Group"), a leading UK operator of 74 premium bars, trading under the Revolution and Revolución de Cuba brands, is pleased to announce an extension to its debt facilities, which the Board is confident will provide the Group with sufficient liquidity for the foreseeable future.

As announced on 14 April 2020, the Group's lenders, NatWest, agreed to increase the Group's Revolving Credit Facility (the "Facility") from £21.0m to £30.0m until 31 August 2020, following which it would step down to £24.0m. NatWest also agreed to waive all financial covenant tests at March 2020 and June 2020.

The Board is pleased to announce that, subject to final documentation, NatWest has agreed to further increase the Group's overall debt facilities, utilising the UK Government's CLBILS. NatWest will provide the Group with a £16.5m term loan (the "Term Loan") and the Facility will remain at £21.0m (together the "Revised Facilities"). The Term Loan will mature on 30 June 2023, following which it will need to be repaid or refinanced. It will be amortised by £1m per annum with the first repayment occurring in June 2021. The Facility has been extended by six months to June 2022, following which it will also need to be refinanced or repaid. The Facility will also be reduced by £1m per annum, with the first reduction occurring in June 2021. With the Revised Facilities in place, the Group will have total debt facilities of £37.5m until June 2021 then reducing to £35.5m until at least June 2022. The Revised Facilities are being provided on normal commercial terms.

The Group's net debt position is currently £22m. With the Revised Facilities in place, the Board is confident that the Group will have sufficient liquidity for the foreseeable future, even taking into account the Board's downside COVID-19 trading scenario.

As part of the Revised Facilities, NatWest have 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 CLBILS, the payment of dividends by the Group is prohibited whilst the term loan remains outstanding.

The Board continues to monitor and assess the Group's current and future financial position and all financing options available to it and will update further when appropriate.

Rob Pitcher, CEO, comments:

"Again, we welcome and are delighted with the additional support from NatWest. 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.

"When restrictions are lifted, we will re-open with much caution - prioritising the health and safety of our employees and guests above all else. 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."

26 May 2020

This announcement contains inside information within the meaning of the Market Abuse Regulation. The person responsible for arranging release of this announcement on behalf of Revolution Bars Group plc is Mike Foster, Chief Financial Officer.