Safestay Regulatory News (SSTY)

29 January 2024

Safestay plc

("Safestay", the "Company" or the "Group")

Successful Debt Refinancing Agreed With HSBC

Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, is pleased to announce, that it has refinanced its existing borrowings into a single £16 million Term Loan and added a new £2.5 million Revolving Credit Facility ("RCF") to support future growth plans. The new Term Loan and RCF are for 5 years and were provided by existing lender HSBC.

The Term Loan interest rates are £4.4 million at 3.955%, £10 million at SONIA but capped at 4.75% with a floor of 3% and £1.6 million at SONIA, all with an additional margin of 2.6%. The RCF has a rate of SONIA plus a margin of 2.85%. The Term Loan is repayable at £0.1 million per quarter from March 2025 together with a final payment at completion. Interest on both the Term Loan and RCF is payable quarterly from March 2024.

The Term Loan replaces the previous interest only £12,745,000 facility with HSBC and enables the repyament of the outstanding CBILS loan of £3 million which carried a signifcantly higher interest rate.

Larry Lipman, Chairman of Safestay, said "We are pleased to have completed this refinancing which increases the Group's overall funding capacity providing additional flexibility and enabling additional investment into the development and growth of our business. We are grateful to HSBC who continues to be a long-term and strong supporter of Safestay."

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