Global events business Hyve Group plc, has announced a refinancing of the Group’s debt. New debt facilities totalling £135m have been signed, comprising a £115m (US$128.9m) term loan and a £20m super senior revolving credit facility (‘SSRCF’).
The new debt facilities replace current £101m currently drawn debt facilities to be repaid in full on 20 October 2022 when the new funds are to be drawn.
The £115m term loan is provided by certain funds and/or accounts of HPS Investment Partners, LLC or subsidiaries or affiliates thereof and is repayable over the next four years. A minimum liquidity covenant of £21m is in place up to and including August 2023. Thereafter a net debt to adjusted EBITDA ratio applies, flatlining at 3x.
The £20m SSRCF is provided by HSBC UK Bank PLC and is available over the next three years and nine months.
As announced in the Group’s trading update on 27 June 2022, Hyve maintains the pace of in-person event recovery in FY22 has exceeded its anticipated levels. This trend has continued over the final three months of the financial year, the group says, and in all markets with the exception of China where restrictions continue to disrupt the event schedule and have resulted in the cancellation of the August Chinese events.
In September two of the Group’s largest events, Autumn Fair and Groceryshop, took place and both significantly outperformed their previous editions. Groceryshop in particular outperformed expectations, reporting revenues more than 40% higher than the largest pre-Covid edition of the event.
“Positive trading momentum continues as we approach FY23, with forward bookings for the next financial year currently in excess of £65m,” the trading statement runs. “This gives confidence in the FY23 outlook such that the incremental debt service cost attributable to the increased margin over SONIA is expected to be offset by improved trading performance.
As of 31 August 2022, the Group’s cash position was £34.7m and adjusted net debt £66.4m, on track to be towards the lower end of the previously stated FY22 year end guidance of £70m-£90m.
Mark Shashoua (pictured), CEO of Hyve Group plc said: "I am pleased that we have secured new debt facilities with two partners that share our vision and are aligned with our ambitions. With the continued accelerated pace of recovery, we now have the long-term financial footing to further advance our organic growth and omnichannel strategy.’
