Learning Technologies Group PLC (AIM:LTG, OTC:LTTHF) has said the collapse of Silicon Valley Bank will have “no material effect on its financial position”.
With cash and equivalents of £110.7mln, the group pointed out it had a robust balance sheet and strong liquidity.
It confirmed around £11.7mln was held on deposit with SVB in the US and UK, of which £0.3mln was withdrawn on Friday as the lender’s woes became apparent.
The digital learning group also said it had a strong and diversified banking syndicate. It has a term loan of US$$255.4mln (of which SVB provided US$53.7m) and an undrawn revolving credit facility of US$50mln (of which SVB provided US$10.5m).
SVB's portion of the term loan will continue to be outstanding until it is due to be repaid or SVB is replaced, the company told investors.
“LTG believes it is unlikely that SVB will fund its share of any future drawings on the RCF, although the remaining US$39.5mln will continue to be available as normal,” the group added in a statement.