CentralNic Group PLC Placement of bond issue and Trading Update (1100D)
24 June 2019 - 4:01PM
UK Regulatory
TIDMCNIC
RNS Number : 1100D
CentralNic Group PLC
24 June 2019
This announcement contains inside information.
24 June 2019
CentralNic Group plc
("CentralNic" or "the Company" or "the Group")
Successful placement of debut EUR50m senior secured bond
issue
and
Trading Update
CentralNic Group PLC (AIM: CNIC), the internet platform that
derives revenue from the worldwide sales of internet domain names,
is pleased to announce the successful placement of senior secured
debt and strong trading for the first four months of the financial
year.
Successful placement of debut EUR50m senior secured bond
issue
On 23 May 2019, CentralNic announced that it had mandated Pareto
Securities to arrange a series of fixed income investor meetings to
potentially issue a 4-year senior secured non-convertible bond of
approximately EUR50m.
The Company has now successfully completed a new senior secured
bond issue of EUR50m (c.$56.8m USD as of 21 June 2019) which was
oversubscribed. The bond which matures in July 2023, has a coupon
of three-month EURIBOR* plus 7% p.a. with quarterly interest
payments. Pareto Securities acted as Sole Bookrunner for the bond
issue. CentralNic was advised by Rothschild & Co in connection
with the bond issue..
-- *With a floor at zero per cent
The settlement date for the bond issue is expected to be in
early July 2019. Following settlement, the Company will use these
funds to repay existing interest-bearing liabilities and to fund
the acquisition of the Sydney-based business TPP Wholesale, the
leading platform for resellers of domain names and hosting in
Australasia, for a headline consideration of $24m AUD (c.$16.6m USD
as of 21 June 2019). TPP Wholesale's revenues and EBITDA for the
financial year ended 31 December 2018 were $17.0m AUD (c.$12.7m
USD) and $3.9m AUD (c.$2.9m USD), respectively, on an unaudited
basis.
An application will be made for the bonds to be listed on the
Oslo stock exchange.
Trading Update
Trading for the first four months of 2019 has been strong and
management therefore expect full year results to be ahead of market
consensus. For the four month period ending 30 April 2019
CentralNic had recorded revenues of c.$33.8m USD (c.$9.0m USD for
the same period in 2018) and EBITDA of c.$5.4m USD (c.$0.4m for the
same period in 2018). Net debt, excluding prepaid charges, stood at
c.$7.4m USD as of 30 April 2019. The Company has changed its
reporting currency to US dollars for 2019, as announced on 26
September 2018.
Ben Crawford, CentralNic CEO commented:
"We are delighted to have completed our debut bond issue, which
was oversubscribed and supported by a wide range of debt capital
markets investors globally. This establishes CentralNic as an
issuer and, in combination with our strong support among equity
market investors, offers us considerable financial flexibility,
over the medium term, to pursue our strategic growth
objectives.
"Meanwhile, the pleasing organic growth of our existing
recurring business continues to provide a solid basis to include
this increased leverage into our financial structure - allowing us
to continue making earnings accretive acquisitions while
maintaining prudent debt ratios."
For further information:
CentralNic Group Plc
Ben Crawford, Chief Executive Officer
Don Baladasan, Group Managing Director
Michael Riedl, Chief Financial
Officer +44 (0) 203 388 0600
Zeus Capital Limited (NOMAD and
Joint Broker)
Nick Cowles / Jamie Peel (Corporate
Finance)
John Goold / Rupert Woolfenden +44 (0) 161 831 1512
(Institutional Sales) +44 (0) 203 829 5000
Stifel (Joint Broker)
Fred Walsh / Neil Shah / Alex Price
/ Rajpal Padam +44 (0)20 7710 7600
Newgate Communications (for Media) +44 (0) 203 757 6880
Bob Huxford centralnic@newgatecomms.com
Tom Carnegie
Robin Tozer
About CentralNic Group plc
CentralNic (AIM: CNIC) is a London-based AIM-listed company
which drives the growth of the global digital economy by developing
and managing software platforms allowing businesses globally to buy
subscriptions to domain names, used for their own websites and
email, as well as for protecting their brands online. Its core
growth strategy is identifying and acquiring cash-generative
businesses in its industry with annuity revenue streams and
exposure to growth markets and migrating them onto the CentralNic
software and operating platforms.
CentralNic operates globally with customers in almost every
country in the world. It earns recurring revenues from the
worldwide sales of internet domain names and other services on an
annual subscription basis.
For more information please visit: www.centralnicgroup.com
The person responsible for the release of this announcement is
Michael Riedl, CFO.
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END
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