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Live Company soars as it restructures balance sheet

The BRICKLIVE events group said as part of the restructuring it has entered a sale and lease back under a hire purchase agreement with Close Leasing Limited, part of merchant bank Close Brothers Group

Live Company Group PLC - Live Company soars as it restructures balance sheet

Live Company Group PLC (LON:LVCG) said it has restructured its balance sheet through the securing of a new lending facility and the repayment of another facility and the closure of an associated equity sharing agreement.

The owner of the BRICKLIVE events brand said its subsidiary Bricklive International Limited has entered into a sale and leaseback under a hire purchase agreement for £1.5mln with Close Leasing Limited, part of merchant bank Close Brothers Group PLC (LON:CBG), for a five-year term with a headline rate of 7.68%. The proceeds of the facility will be used to repay several investors including Riverfort Global Opportunities PCC Limited and YA II PN Limited.

WATCH: Live Company chairman 'delighted' with new Close Brothers partnership as it restructures debt

Live Company chairman David Ciclitira has guaranteed £300,000 of the loan through a personal guarantee for the entire five-year duration of the loan, subject to an annual review by Close Leasing Limited, and will be compensated annually on this amount at 7.06%.

Meanwhile, Live Company said it has repaid and closed a lending facility with Riverfort and YA II, while an equity sharing agreement with the two investors has also been cancelled as of August 14, with around 5.7mln shares held by the two investors purchased into trust for around £57,000.

"The debt restructuring provides us with an innovative way of reducing our cost of capital for the next five years”, Ciclitira said in a statement.

“I would like to thank Riverfort for their support over the past few years when we needed it most. We are delighted to have formed a new partnership with the highly-regarded Close Brothers Ltd (introduced by Sedulo Funding Solutions Ltd ) and we look forward to working with them over the next stage of our growth", he added.

The company’s shares soared 22% to 12.5p in early deals on Monday.

Quick facts: Live Company Group PLC

Price: 8.35 GBX

AIM:LVCG
Market: AIM
Market Cap: £7.46 m
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