24 Jun 2020 07:00
RM Secured Direct Lending Plc
("RMDL" or the "Company")
Update on secured loan to Gym franchise
Support for Management Buy Out
RM Funds, Investment Manager to RMDL, today announces an update on its £7m senior secured loan to énergie Fitness ("énergie"), the leading low-cost fitness franchisor in the UK and Ireland.
As outlined in the monthly factsheet for April 2020 published on 18 May 2020, RM Funds, énergie's executive management team and its sponsor have been in negotiations regarding the need for additional working capital to support the business during the period of government-imposed closure. During this time, RM Funds has consulted extensively with the directors of énergie to work through a range of scenarios with a view to maximising value for all of its stakeholders whilst the business navigates these unprecedented conditions.
RMDL today announces its support for a Management Buy Out ("MBO") of the business. The MBO is led by Jan Spaticchia, the founder of énergie and the person responsible for its nationwide growth since founding the company in 2003, opening 105 clubs, and 85 franchisees with 143,000 members, until the sale of the business in 2019.
Mr Spaticchia will reacquire the business, with backing from RMDL and a consortium of investors, including several of énergie's original founder-shareholders. énergie Global Franchising Ltd has been formed to acquire the business, trade and assets of the énergie Group, with a significantly strengthened executive, balance sheet and a new corporate structure.
Further details will be released in the RMDL June 2020 factsheet due to be released on or around 16 July.
Pietro Nicholls, Portfolio Manager, RM Funds, commented:
"We are pleased to continue to support énergie under Jan Spaticchia and the team. The acquisition and recapitalisation of the business preserves RMDL's senior secured investment, enhances RMDL's economic interest, secures jobs and provides certainty of funding, allowing Jan and the management team to restore the growth of the business and brand, once gyms are allowed to reopen."
"This demonstrates the benefits of RMDL's strategy to provide tailored, secured debt solutions to high quality businesses as well as the ability of the Investment Manager to act flexibly and work with borrowers to find resolutions and preserve the interests of RMDL's Shareholders."
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For further information, please contact:
RM Capital Markets Limited - Investment Manager
Pietro Nicholls
James Robson
Tel: 0203 697 1768
Tulchan Communications LLP - Financial PR
Elizabeth Snow
Deborah Roney
Tel: 0207 353 4200
About RM Funds
RM Funds is the Investment Manager to RM Secured Direct Lending PLC and VT RM Alternative Income Fund. RM Funds is an alternative asset manager. Founded in 2010, with offices in Edinburgh, and London, it has transacted in excess of £50 billion of bonds and loans since its inception, and advised or originated, structured and managed the due diligence process for over £1 billion of Sterling credit transactions and approximately €700 million of Euro based transactions in each case since 2012. RM Funds is a trading name of RM Capital Markets Limited. RM Funds is a signatory to the Principles of Responsible Investment.
About RM Secured Direct Lending
RM Secured Direct Lending Plc is a closed-ended investment trust established to invest in a portfolio of secured debt instruments. The Company aims to generate attractive and regular dividends through loans sourced or originated by the Investment Manager with a degree of inflation protection through index-linked returns where appropriate. Loans in which the Company invests are predominantly secured against assets such as real estate or plant and machinery and/or income streams such as account receivables.