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(Sharecast News) - Videndum announced an in-principle agreement with its revolving credit facility lenders and its two largest shareholders on Tuesday, on the main components of a refinancing and deleveraging plan that would reduce net debt by more than 90m but result in significant dilution for existing shareholders.
The group said it was making constructive progress on securing alternative sources of liquidity, with the proposed refinancing expected to combine asset disposals, new debt facilities and new equity issuance.
Its net debt stood at 143.3m on 30 November, including 26.5m of finance leases.
Under the agreed-in-principle proposal, Videndum said it would raise around 70m gross through a firm placing, placing and open offer, with its two largest institutional shareholders indicating support to participate at least on a pro rata basis following completion.
The plan also included the equitisation of 23m of revolving credit facility debt into equity for Polus Capital, a long-standing lender, alongside the repayment of around 50m of existing facility borrowings from the equity proceeds.
The remaining revolving credit facility would be restructured to extend maturities and amend terms, comprising a three-year 31.5m tranche A and a two-year 13.5m tranche B, alongside the introduction of a new three-year super senior facility underwritten by Polus Capital.
On a pro forma basis, Videndum said net debt at 30 November would have been 52m, including finance leases.
"Reaching in-principle agreement on the terms of the refinancing is an important milestone for Videndum," said executive chairman Stephen Harris.
"The proposed refinancing will help secure a stable and sustainable future for the business and position Videndum for long-term success.
"It will be a good outcome for Videndum, and we are grateful for the support we have received from our shareholders and lenders to date."
Videndum cautioned that all elements of the refinancing were inter-conditional and subject to final documentation, approvals and shareholder consent, including approval to issue new shares significantly below the current nominal value of 20p per share.
The company said it expected the refinancing to complete by the end of the first quarter of 2026 but warned that if it did not complete, lenders were likely to pursue an alternative transaction that could result in no recovery for existing shareholders.
At 0916 GMT, shares in Videndum were down 54.02% at 14.3p.
Reporting by Josh White for Sharecast.com.