Videndum PLC (LSE:VID) shares dropped 39% after the provider of hardware and software for the content creation market announced it had agreed the terms of a refinancing plan with its main lenders and two largest shareholders.
The proposed refinancing includes a £70 million equity raise priced “very significantly below” the current nominal value of 20p, a £23 million debt-for-equity swap with existing revolving credit facility lender Polus Capital, and partial repayment and restructuring of the company’s existing credit facility.
A new three-year 'super senior' facility, underwritten by Polus Capital, is also part of the plan.
The video equipment maker said the refinancing would reduce pro forma net debt from £143.3 million as of 30 November 2025 to around £52 million.
The issuance of new shares would require shareholder approval, with existing shareholders expected to be “very significantly diluted”.
Executive chairman Stephen Harris said: “Reaching in-principle agreement on the terms of the refinancing is an important milestone for Videndum.”
Completion of the refinancing is expected by the end of the first quarter of 2026, subject to approvals and final documentation.
Back in August, Videndum posted a sharp drop in second-quarter revenues, triggering doubts over its future profitability and cash flows, with restructuring efforts underway but net debt rising
Amidst weak market conditions, made worse by trading volatility linked to US tariffs, first-half revenues were down 25%, leading to a £7 million adjusted operating loss for the first half.